Seoul’s financial markets reflected the nation’s turbulent political climate on Wednesday, as shares sank for a second day amid the fallout from President Yoon Suk Yeol’s aborted martial law declaration. The benchmark KOSPI shed 0.90%, closing at 2,441.85, with investor sentiment battered by the president’s escalating standoff with opposition lawmakers ahead of an impeachment vote. The Korean won, too, faltered, losing ground against the U.S. dollar to trade at 1,415.10 won, a five-won dip from the previous day.
The political drama unfolded in sharp relief late Tuesday when Yoon declared martial law, accusing opposition forces of paralyzing the government. By Wednesday morning, a decisive rejection by the National Assembly forced the president to retreat, but the damage to market confidence was done. Foreign investors offloaded a net 319.19 billion won in stocks, overwhelming domestic buyers and deepening the selloff. Trade volumes were moderate, yet decliners dominated the market, outnumbering advancers by more than four to one.
Amid the chaos, Samsung Electronics and SK hynix provided rare glimmers of hope, rising 1.13% and 2.98% respectively, buoyed by renewed interest in chipmakers. However, most large caps struggled under the weight of uncertainty. Hyundai Motor, LG Energy Solution, and POSCO Holdings all registered sharp losses, reflecting investors’ flight to safety. Meanwhile, bond markets signaled a shift to caution, with yields on key Treasurys falling as prices rose. As impeachment looms, Seoul’s markets are bracing for more turbulence, caught in the crossfire of political uncertainty and investor anxiety.
(Source: Korea Herald | New York Times | Al Jazeera)
