South Korean President Yoon Suk-yeol announced a "state of emergency" late at night, leading to a sharp decline in the Korean won and Korean stocks, while the Korean cryptocurrency market plummeted. The state of emergency has now been lifted

According to CCTV News, around 10 PM local time on December 3rd, South Korean President Yoon Suk-yeol suddenly conducted a television broadcast, announcing the implementation of emergency martial law. Regarding the reasons for the martial law, Yoon primarily targeted the opposition party during the broadcast, stating that the opposition was manipulating the National Assembly and disrupting the country, claiming to purge "anti-national forces" within South Korea. Analysts suggest that the recent actions by the opposition party to push for the impeachment of public officials, such as prosecutors, may have triggered Yoon's sudden announcement of martial law late at night. The sudden announcement of martial law caught both the South Korean political scene and society off guard. Both the ruling and opposition parties expressed that the martial law was unreasonable. The leader of the largest opposition party, Lee Jae-myung, called on supporters to gather in front of the National Assembly to protect it. Subsequently, the South Korean martial law command announced its establishment, appointed a commander, and issued several martial law decrees, such as prohibiting political gatherings, among others. It also stated that if there were violations of the martial law decrees, the police could make on-site arrests. In response to the unexpected martial law, the South Korean National Assembly convened an emergency meeting, with all 190 members voting to demand that Yoon Suk-yeol withdraw the martial law decree. Later, South Korean President Yoon Suk-yeol announced through a live broadcast from the presidential office in Yongsan, Seoul, that he decided to accept the National Assembly's request and lift the martial law. This was just over six hours after he announced the implementation of martial law at 10:25 PM on the 3rd. For some time, the divisions and disputes over political positions in South Korea have intensified, drawing widespread attention from South Korean society. Due to the situation in South Korea, the Korean won and Korean stocks plummeted, and the Korean cryptocurrency market crashed. After the lifting of martial law, the declines in related assets significantly narrowed. Yoon Suk-yeol Announces Implementation of "Emergency Martial Law" According to CCTV News, on the evening of December 3rd, South Korean President Yoon Suk-yeol suddenly conducted a television broadcast, announcing the implementation of "emergency martial law." Yoon Suk-yeol listed several reasons, stating that the opposition party is manipulating the National Assembly and disrupting the country, and expressed his intention to eliminate "anti-state forces" within South Korea. Yoon Suk-yeol stated that since the government took office, the National Assembly has initiated 22 impeachment motions against government officials, and since the establishment of the 22nd National Assembly in June of this year, impeachment actions have been taken against 10 officials. Yoon Suk-yeol claimed that the National Assembly intimidates judges, impeaches a large number of prosecutors, paralyzes judicial work, and attempts to impeach the Minister of the Interior and Safety, the Chairman of the Korea Communications Commission, the Auditor General, and the Minister of National Defense, even causing the entire administrative system to become paralyzed. Yoon Suk-yeol said that all major budgets related to the core functions of the state, drug crime fighting, and maintaining public safety have been completely cut, severely damaging the basic functions of the state, turning South Korea into a drug paradise and a state of public security crisis. Yoon Suk-yeol stated that the Democratic Party uses the budget as a means of political struggle, completely ignoring the lives of the people, relying solely on impeachment, special prosecution, and protecting opposition party representatives from judicial sanctions, which has paralyzed state governance. Shortly after Yoon Suk-yeol announced "emergency martial law," Han Dong-hoon, a representative of the ruling party in South Korea, stated that "emergency martial law" is a mistake and expressed that "he will work with the people to stop it." The Largest Opposition Party Calls an Emergency Parliamentary Meeting On December 3rd local time, the largest opposition party, the Democratic Party of Korea, convened an emergency parliamentary meeting after Yoon Suk-yeol announced "emergency martial law." Party leader Lee Jae-myung called on the South Korean public to go to the National Assembly to protect it. In addition, a majority of National Assembly members and the Speaker of the National Assembly are heading to the National Assembly. South Korea's Minister of National Defense Calls a Meeting of Major Commanders On December 3rd local time, the South Korean Minister of National Defense convened a meeting of major commanders across South Korea. According to external analysis, the recent push by the opposition party in South Korea for a series of legislation targeting President Yoon Suk-yeol's wife and the impeachment of prosecutors and other public officials may have been the trigger for Yoon Suk-yeol's announcement of "emergency martial law." South Korea's Martial Law Command Issues the First Martial Law Order On the evening of December 3rd local time, the South Korean Martial Law Command issued the first martial law order. The South Korean Martial Law Command stated that in order to protect national security, the following matters will be announced throughout the Republic of Korea at 23:00 on December 3, 2024: Prohibition of activities of the National Assembly and local councils, political parties, and all political activities such as political associations, gatherings, and demonstrations. Prohibition of all actions that deny the liberal democratic system or attempt to subvert it, as well as fake news, fabricated public opinion, and false incitement All statements and publications are under the control of the Martial Law Command. Strikes, work stoppages, and gatherings that cause social unrest are prohibited. All medical personnel, including interns and resident doctors, who are on strike or have left their posts must return to their duties within 48 hours; those who violate this will be punished according to martial law. Ordinary citizens will have their daily inconveniences minimized, except for anti-state forces and other subversive elements. Those who violate the above martial law may be arrested, detained, and searched without a warrant, and punished according to Article 9 (Special Measures Authority of the Martial Law Commander) and Article 14 (Punishment) of the Republic of Korea's Martial Law Act. According to reports, after South Korean President Yoon Suk-yeol announced the emergency martial law, some portal websites in South Korea are in a state of paralysis. Conflicts Erupt in Front of the South Korean National Assembly On the evening of December 3rd local time, according to CCTV News, the entrances and exits of the South Korean National Assembly are closed, and members of the National Assembly cannot pass. On the evening of the 3rd, conflicts occurred in front of the South Korean National Assembly as the opposition party's support group confronted the police at the entrances of the National Assembly. Additionally, the crowd attempting to enter the National Assembly is in a standoff with the police. On the 3rd local time, CCTV reporters saw a large crowd gathered at the entrance of the South Korean National Assembly, demanding to enter and shouting slogans calling for Yoon Suk-yeol to withdraw the martial law order. CCTV reporters at the South Korean National Assembly observed that the National Assembly has been sealed off, and conflicts have occurred on site. Additionally, planes are circling above the National Assembly. According to a report by China News Service citing Yonhap News Agency, the situation around the South Korean National Assembly is tense, with armed soldiers parachuting from helicopters. At approximately 11:46 PM local time on December 3rd, three helicopters suspected to be from the South Korean military entered the National Assembly building, with witnesses stating that soldiers carrying firearms parachuted into the National Assembly. Reports indicate that a medium-sized bus from the South Korean Army was also parked on the road in front of Gate 2 of the National Assembly. Meanwhile, South Korean airborne troops attempted to enter the National Assembly through the back door, but members of the National Assembly and their aides went to block them, and it was later reported that the airborne troops had abandoned their attempt to enter. At 3 AM local time on December 4th, many citizens, including supporters of the opposition party, gathered in front of the National Assembly for a rally, holding flags and shouting slogans, demanding Yoon Suk-yeol to withdraw the emergency martial law order. The martial law command temporarily deployed helicopters and soldiers to enter the National Assembly, but as of now, no serious conflicts have occurred. Outside the National Assembly, many citizens attempted to enter, resulting in pushing and shoving with the police present As the crowd continues to grow, the roads in front of the Congress have completely prohibited vehicle passage. South Korea's Largest Union Calls for General Strike Against Yoon Suk-yeol's Martial Law South Korea's largest industry union has announced its opposition to President Yoon Suk-yeol's declaration of martial law and is calling for a general strike to force him to change his course. The union has about 1.2 million members. Kim Jin Euk, head of the Seoul branch of the Korean Confederation of Trade Unions, said, "We are here to stop the illegal declaration of martial law and impeach the president. I can hardly believe he would do such a crazy thing. He is now facing a political siege, and he did this in an unfavorable political environment in South Korea. We will plan a general strike, but we don't know when it will end." This 60-year-old union leader joined the nationwide protests against the president's shocking martial law order. South Korea's largest ambulance union plans a general strike. They oppose President Yoon Suk-yeol's sudden declaration of martial law on December 3 and are calling for the president to overturn his decision. South Korean Finance Minister and Central Bank Governor: Will Take All Necessary Measures The South Korean finance minister, central bank governor, and other officials held a meeting to discuss the current market situation. The head of South Korea's financial and economic department announced that unlimited liquidity will be provided to stabilize the market if necessary. South Korea's Minister of Economy and Finance Choi Sang-mok, Central Bank Governor Lee Chang-yong, and financial regulatory officials issued a joint statement saying they will take all possible measures to stabilize the financial and foreign exchange markets, including providing "unlimited liquidity." The finance minister held a meeting at 11:40 PM local time on Tuesday to discuss the market. Detailed market support measures will be announced on Wednesday morning. They will hold emergency meetings daily to discuss the economy and the market. Chinese Embassy in South Korea Reminds Chinese Citizens in Korea to Strengthen Safety Precautions On December 3, the Chinese Embassy in South Korea issued a reminder for Chinese citizens in Korea to strengthen safety precautions. The full text is as follows: On the evening of December 3, South Korean President Yoon Suk-yeol announced an emergency martial law. The martial law commander issued a martial law proclamation, prohibiting all political activities while stating that the daily lives of ordinary citizens would be maximally ensured. The Chinese Embassy in South Korea reminds Chinese citizens in Korea to remain calm, pay attention to changes in the political situation in South Korea, strengthen safety awareness, reduce unnecessary outings, exercise caution in expressing political opinions, and comply with the official orders issued by South Korea. In case of emergency safety situations, please call the following assistance numbers: Crime Reporting: 112 Fire, Accidents, and Rescue: 119 Emergency Medical Services: 1339 Ministry of Foreign Affairs Global Consular Protection and Emergency Hotline: +86-10-12308 Consular Protection and Assistance Phone of the Chinese Embassy in South Korea: +82-2-755-0572 Consular Protection and Assistance Email: seoul_lb@csm.mfa.gov.cn Consular Protection and Assistance Phone of the Consulate General in Busan: +82-10-8519-8748 Consular Protection and Assistance Phone of the Consulate General in Gwangju: +82-62-361-8880 Consular Protection and Assistance Phone of the Consulate General in Jeju: +82-64-722-8802 The White House states that the U.S. did not receive prior notification When asked about South Korean President Yoon Suk-yeol's announcement of a state of emergency, U.S. President Biden stated that he has not received a comprehensive briefing on the matter and is trying to understand the situation. A spokesperson for the White House National Security Council stated in a statement that when the South Korean president issued the state of emergency, “ there was no prior notification ” to the Biden administration, and the White House did not receive any notification. South Korean military has entered the National Assembly to maintain order According to CCTV News on December 4th, the South Korean military has entered the National Assembly to maintain order. According to CCTV News, in the early hours of the 4th, the South Korean martial law troops are attempting to enter the National Assembly to arrest the lawmakers attending the meeting. The South Korean martial law troops have blocked the main entrance of the National Assembly and set up roadblocks in front of the gate. The South Korean martial law troops attempted to break into the National Assembly. On December 4th local time, the area around the South Korean presidential office in Yongsan, Seoul, entered a state of full control. South Korea's largest opposition party accuses the president of inciting rebellion According to CCTV News, in the early hours of December 4th, the largest opposition party in South Korea, the Democratic Party of Korea, accused President Yoon Suk-yeol of "inciting rebellion." According to CCTV International News, the leader of the Democratic Party of Korea, Lee Jae-myung, stated: "From this moment on, Yoon Suk-yeol is no longer the president of South Korea." South Korean National Assembly passes resolution "demanding the lifting of the emergency martial law order" In the early hours of December 4th, the South Korean National Assembly held an emergency plenary session and voted on the "demand to lift the emergency martial law order." 190 members attended the meeting and voted in favor, and the Speaker of the National Assembly, Yoo Won-sik, subsequently announced the emergency martial law order invalid. In addition, the leader of South Korea's largest opposition party, Lee Jae-myung, entered the National Assembly, preparing to participate in an emergency plenary session regarding the "request to lift the martial law." All soldiers who entered the National Assembly building have been withdrawn In the early hours of the 4th local time, South Korean National Assembly Speaker Yoo Won-sik stated, all soldiers who entered the National Assembly building have been withdrawn. In the early hours of the 4th local time, Lee Jae-myung, the leader of South Korea's largest opposition party, the Democratic Party, addressed the military and police outside the National Assembly, stating, "The emergency martial law order that violates the constitution has expired, and the continued exercise of power by the military and police is illegal," demanding the withdrawal of military and police from outside the National Assembly. The South Korean Joint Chiefs of Staff stated, that all troops deployed due to the emergency martial law order have been withdrawn since 4:22 AM on the 4th. South Korean President Yoon Suk-yeol announces the lifting of the emergency martial law order On December 4th local time, South Korean National Assembly Speaker Yoo Won-sik stated, Notification has been sent to South Korean President Yoon Suk-yeol and the Ministry of Defense, requesting the lifting of the emergency martial law. Shortly after, the ruling party in South Korea, the People Power Party, issued a statement requesting the president to accept the National Assembly's proposal to "lift the emergency martial law." On December 4th, local time, South Korean President Yoon Suk-yeol delivered another televised address, stating that after the National Assembly's request to lift the martial law, he respects the opinion of the National Assembly and has withdrawn the martial law troops. An emergency cabinet meeting will be held shortly to lift the martial law. According to CCTV News, around 4:27 AM local time on the 4th, South Korean President Yoon Suk-yeol announced live from the presidential office in Yongsan, Seoul, that he decided to accept the National Assembly's request and lift the martial law. This came just over six hours after he announced the implementation of martial law at 10:25 PM on the 3rd. In the early hours of the 4th, South Korea held an emergency cabinet meeting, which passed a resolution to lift the emergency martial law. Yoon Suk-yeol stated during the live broadcast, "Last night at 11 PM, in order to combat anti-state forces that paralyze the essential functions of the nation and undermine the constitutional order of liberal democracy, I announced the emergency martial law with a resolute will to save the country," but due to the National Assembly's request to lift the martial law, he withdrew the troops that had been deployed under martial law. Yoon Suk-yeol also urged the National Assembly to immediately stop "unethical behaviors such as repeated impeachment, monopolizing legislation, and monopolizing budgets that paralyze the functions of the state." Korean Won and Korean Stocks Plummet, Korean Cryptocurrency Market Crashes On Wednesday morning, U.S. stocks, the South Korean ETF (EWY) opened lower and continued to decline, with intraday losses expanding to 7%. Samsung Electronics fell 4.4% in the London market. POSCO's ADR in the U.S. stock market fell 4.9% before the market opened. Coupang's ADR in the U.S. stock market fell 2.8% before the market opened. The U.S. dollar rose against the Korean won, with the intraday increase expanding to 1.4%, trading below 1425 won, and at 21:53 Beijing time, it fell to 1427.25 won, the lowest since October 2022, when it briefly dropped to 1444.78 won Subsequently, according to the Korea Herald, South Korean martial law troops attempted to enter the National Assembly. The Korean won fell more than 2.3% against the US dollar, dropping below 1439 won. Affected by the news of the South Korean president issuing an emergency martial law order, the Korean cryptocurrency market collectively plummeted, with Upbit's BTC directly dropping 30% to a low of $66,500, and XRP plummeting 60% from $2.90 to $1.16. The South Korean Ministry of Finance and the central bank are actively formulating market rescue measures, and the decline of the won has narrowed by half. After the martial law was lifted, the decline of related assets significantly narrowed: The decline of the won against the US dollar narrowed to less than 1.6%, returning above 1430 won. According to Bloomberg's aggregated data, at 14:43 New York time, the one-month non-deliverable forward for the won narrowed its decline to 1414.75. The South Korean ETF (EWY) fell 1.59%, closing at $55.81. Bitcoin once rose more than 0.6%, approaching the daily high of $96,305.88 refreshed at 10:41 Beijing time. A spokesperson for the Korea Exchange told Bloomberg that they are assessing whether normal trading will resume on Wednesday, December 4. The exchange retracted earlier news that trading would proceed as usual. Subsequently, according to South Korean authorities, the South Korean stock market will open as usual on Wednesday, December 4, and all financial and foreign exchange markets will operate normally. Commentary: This does not mean an increase in geopolitical risk According to Bloomberg's commentary, the South Korean president announced martial law, but this does not mean an increase in geopolitical risk. The Bloomberg article states that the implementation of martial law in South Korea is shocking, but military rule is not new in its history. The South Korean government announced martial law on December 3, shocking both domestically and internationally. However, the country has a profound history of martial law and military rule. The last time South Korea was under martial law was on October 27, 1979. At that time, President Park Chung-hee was assassinated, and Prime Minister Choi Kyu-hah ordered the implementation of military control. Subsequently, Choi Kyu-hah, who succeeded as president, extended the martial law until 1980 and implemented a ban on political parties, provoking strong opposition from democratic forces. After a national referendum, the martial law was lifted in 1981, but hundreds had died in a bloody crackdown prior to that