Coupang stock slipped Tuesday on news that martial law had been declared in South Korea.
But hours after declaring martial law in the country, South Korean President Yoon Suk Yeol will reportedly lift the emergency order. The announcement comes shortly after South Korea's National Assembly voted to overturn the order. Stocks with ties to South Korea, including e-commerce leader Coupang fell sharply on the initial order but trimmed some losses later in the day.
Yoon said he would lift the order as soon as his cabinet assembled, according to the Associated Press. With his initial order, Yoon accused the opposition party, which controls the country's National Assembly, of holding the country hostage, according to the Wall Street Journal.
The early Wednesday morning vote (in local time) was 190 to 0 in the National Assembly against the martial law order, according to the WSJ. The president's conservative People Power Party opposed the order in public statements following the televised address declaring martial law.
Yoon's speech came after the largest stock market in South Korea, the KRX, closed. But exchange-traded funds designed to track South Korean equities fell in U.S. trading Tuesday. The iShares MSCI South Korea ETF fell as much as 6% and pared its losses to 1.6%.
Analysts with Evercore ISI wrote in a client note that martial law in South Korea was "not on our bingo card for the final month of 2024." While the analyst note was sent before the president withdrew the order, the analysts noted that any turmoil in Korea "warrants particular attention given its prominent role in global supply chains."
Coupang Stock Slides
Shares of Coupang, which is based in Seattle but operates South Korea's largest e-commerce marketplace, fell more than 5% in heavy volume to 23.40 in morning trading. The stock shed 3.7% to close at 23.92. U.S.-listed Coupang stock had gained more than 45% year to date heading into Tuesday trading.
The South Korean won weakened against the dollar by more than 2%.
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