South Korea is facing an unprecedented political crisis as President Yoon Seok-yeol declared “emergency martial law” late today local time, the country's first such decision since 1980.
The decision, which claimed to be aimed at preserving constitutional order, led to political chaos, widespread protests and a sharp decline in South Korean financial assets.
Following the development, many assets, including Bitcoin, experienced serious declines on Upbit, the country's largest cryptocurrency exchange. The BTC price fell to around $71,000.
Chart showing Bitcoin price volatility on Upbit.
In an emergency speech from the Yongsan Presidential Palace in Seoul, President Yoon cited the actions of opposition forces in the National Assembly as a threat to the country’s stability. “By imposing emergency martial law, I will rebuild and defend the free Republic of Korea to prevent the nation from entering the path of destruction,” Yoon said. He vowed to “eliminate anti-state forces” that he claimed were undermining South Korea’s democratic system.
The announcement sparked a backlash from opposition leaders, with former President Moon Jae-in issuing a strong statement condemning the declaration of martial law. “South Korean democracy is facing an unprecedented crisis,” Moon said in a social media post. The former president called on the National Assembly to take immediate action and called on citizens to unite to defend democratic values.
Following Yoon’s statement, opposition lawmakers clashed with police outside the National Assembly building, escalating tensions in the capital. Amid the mounting pressure, South Korea’s National Assembly held an emergency session early on December 4, voting on a motion calling for martial law to be lifted.
Of the 190 lawmakers present at the session, 170 voted in favor of the motion, effectively nullifying Yoon's order. National Assembly Speaker Woo Won-sik declared the emergency martial law “null and void.”
The declaration of martial law has raised concerns about South Korea’s political and economic stability. While President Yoon has assured that the country’s foreign policy and international commitments will not change, his rhetoric about purging “anti-national forces” has raised concerns at home and abroad.
*This is not investment advice.
