South Korean stocks rocked in U.S. trading after president declares martial law

South Korean Stocks Plunge Amid Martial Law Declaration #

South Korean stocks experienced a significant downturn in U.S. trading following the announcement of emergency martial law by President Yoon Suk Yeol. The iShares MSCI South Korea ETF, which encompasses over 90 large and mid-sized companies, plummeted by 6%, hitting a 52-week low. American Depositary Receipts of Korea Electric Power fell by 5%, and Coupang, a major e-commerce firm, dropped 6%.

President Yoon accused opposition parties of having sympathies with North Korea and dominating parliament. However, he did not elaborate on how martial law might impact governance and democracy in South Korea.

In response, the Korea Exchange announced it would convene an emergency meeting to devise response strategies and decide on the possibility of opening the market on Wednesday. The U.S. dollar saw a 1.9% rise against the South Korean won.