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Protesters calling for the overthrow of South Korean President Yoon Suk Yeol react following the outcome of the second martial law impeachment vote in front of the National Assembly in Seoul on December 14, 2024.
Antonio Wallace | afp | fake images
South Korean markets made early gains on Monday following the ouster of President Yoon Suk Yeol on Saturday.
The South Korean National Assembly’s second attempt to remove Yoon was successful when 204 lawmakers voted in favor of the motion, surpassing the two-thirds bar needed to remove Yoon in the 300-seat chamber.
The vote was triggered by Yoon’s brief declaration of martial law, which plunged the country into political turmoil.
The blue chip Kospi rose early Monday morning, but halted its gains later in the session. The small-cap Kosdaq rose 0.7%. If both indices end in positive territory today, it will be the fifth consecutive day of gains for both indices.
Yoon had declared martial law late on December 3, the first time in more than 40 years that Asia’s fourth-largest economy has been declared. He rescinded the order hours later, after 190 lawmakers rejected the declaration.
The Kospi has gained about 2.2% since the close on December 3, the last trading day before martial law was declared, and the Kosdaq has gained about 1.1%.
Both indices had rebounded strongly last week after initially falling following the uprising of martial law and the failed first impeachment vote. The Kospi reached its lowest level since November 2023 on December 9.
The Kospi has gained around 6% since the December 9 low, while the Kosdaq has seen an increase of around 11% since then.
Opposition lawmakers had pushed for an initial impeachment vote on Dec. 7, but failed to get the 200 votes needed to remove Yoon after lawmakers from his ruling People Power Party walked out of the chamber.
Since Saturday’s vote, Yoon has been suspended from state duties with Prime Minister Han Duck-soo serving as acting president.
The impeachment process now goes to South Korea’s Constitutional Court, which must then decide whether to confirm or reject Yoon’s dismissal.
According to the Constitutional Court Law of 1988, the Constitutional Court must make a final decision within 180 days. If Yoon decides to leave office before the court’s decision, the impeachment case is dismissed.
Investors will continue to assess the political situation as South Korean lawmakers and officials take steps to reassure allies, financial markets and the public.
South Korea’s Finance Ministry said in statements on Monday that uncertainties in the country’s political system have eased after Yoon’s impeachment, emphasizing that the economic system remains stable, according to local media report.
A day earlier, the new acting president of South Korea was in a call with US President Joe Biden and reportedly He assured him that South Korea would carry out its foreign and security policy without interruption.
The leader of South Korea’s main opposition party has also announced would not seek to indict Han for his role in declaring martial law and instead offered to work with the government to ease tensions.
