South Korea’s won tumbled to its weakest level in over two years, hitting 1,427.10 against the U.S. dollar, after President Yoon Suk Yeol’s shocking announcement of martial law on Tuesday. The sudden drop in the currency comes amid growing uncertainty over the nation’s political landscape and concerns about the broader economic impact of the decision.
Martial law, typically invoked during times of war, rebellion, or natural disasters, involves the temporary replacement of civilian authority with military rule. Under martial law, military commanders are granted broad powers to make and enforce laws, sidelining normal democratic processes. In his emergency address, Yoon framed the move as necessary to protect South Korea’s constitutional order and safeguard national freedom. He accused opposition leaders of attempting to paralyze his administration through impeachment efforts, which he said threatened the stability of the country.
The announcement triggered an immediate sell-off of the South Korean won, which had already been under pressure due to broader global economic uncertainties. With markets reacting to the heightened political risk, the won’s sharp decline signals investor concerns over South Korea’s political stability and future economic prospects. The sudden turn of events has raised fears about the potential for prolonged instability, with both domestic and international stakeholders closely monitoring the situation.
