South Korean stocks experienced a significant decline on Tuesday following President Yoon Suk's declaration of martial law aimed at safeguarding the nation against perceived 'communist forces.'
The iShares MSCI South Korea ETF, which comprises nearly 100 large and midsized South Korean companies and is traded in the US, saw a notable 6% drop. Similarly, in UK trading, shares of Samsung, South Korea's largest company, fell by 7% in response to the announcement.
Furthermore, the US dollar surged by approximately 2% against the South Korean won, reaching its lowest level since 2009.
President Yoon's declaration was made at 11 p.m. local time, after the stock market had already closed for the day. The decision has raised uncertainties regarding the potential opening of the stock exchange on Wednesday.
Finance Minister Choi Sang-mok is set to convene an emergency meeting with officials from the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service to address the situation, as reported by The Korea Times on Tuesday.
South Korea, known as the world's 13th-largest economy, is now grappling with the repercussions of these recent developments in its financial markets.
