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South Korean Currency Slumps After Martial Law Declared
The South Korean won plunged sharply against the U.S. dollar on Tuesday, hitting a two-year low after an unexpected address by President Yoon Suk Yeol in which he declared emergency martial law.
The South Korean leader has also accused opposition lawmakers of effectively seizing control of the National Assembly, pushing the country into a deep political crisis.
According to NBC, the dollar surged by as much as 2.7 percent against the won before paring some of its gains.
The won’s rapid decline began around 10:30 p.m. local time, shortly after Yoon’s announcement. By 10:53 p.m., the currency had depreciated to 1,430.0, a drop of 28.7 won from the previous day’s close.
Why Has the South Korean Won Plunged Against the U.S. Dollar?
In the broadcast, Yoon said the emergency measures were necessary to protect the Republic of Korea from internal and external threats, particularly from North Korean communist forces.
“I declare martial law to protect the free Republic of Korea, to eradicate pro-North Korean antistate forces that are undermining our freedom, and to preserve the constitutional order,” he said, according to Reuters.
The market reaction reflected the heightened uncertainty in the country, as the currency had already been under pressure from global economic factors and domestic political concerns.
Yoon’s emergency measures, while intended to restore order, have sent shock waves through both financial markets and the South Korean public.
What Are the Protesters in South Korea Demanding?
Tensions escalated late on Tuesday while military forces moved swiftly to suspend parliamentary activities, leading to mass protests and a political backlash.
According to national reports, the speaker of the National Assembly attempted to convene a parliamentary session in response to Yoon’s announcement, but members were blocked from entering the building.
Yoon’s martial law declaration has raised alarm about the concentration of power in the executive branch, with many fearing it could allow the president to exert unchecked control over the nation’s military forces.
The move immediately triggered protests across the country, with demonstrators voicing concerns that Yoon’s decision would grant him sweeping, authoritarian powers.
Han Dong-hoon, the leader of Yoon’s own conservative People Power Party, called the decision wrong and vowed to “stop it with the people.”
Meanwhile, opposition leader Lee Jae-myung, who narrowly lost to Yoon in the 2022 presidential election, condemned the declaration as “illegal and unconstitutional.” In a livestreamed broadcast on YouTube, Lee declared, “From this moment on, President Yoon Seok Yeol is not the president of the Republic of Korea,” adding, “We cannot allow the military to govern this country.”
What Is President Yoon Suk Yeol Accused Of?
Lee called for mass public demonstrations at the National Assembly to challenge the military’s intervention and to resist what he described as an attempt to undermine democratic governance.
The political crisis comes amid growing tensions between Yoon’s administration and the opposition-controlled National Assembly.
Since taking office in 2022, Yoon has struggled to advance key policies, including the contentious 2024 budget, because of resistance from the Democratic Party.
His refusal to allow independent investigations into corruption scandals involving his wife and other high-ranking officials has further deepened the divide between the president and his adversaries.
Miami Herald