Seoul: The South Korean government announced its readiness to inject "unlimited liquidity" into the country's financial markets to ensure stability, following a sudden declaration of emergency martial law that sent shockwaves through the markets. This commitment was made public by the finance ministry on Wednesday, shortly after an emergency meeting convened by Finance Minister Choi Sang-mok with economy-related ministers.According to Yonhap News Agency, the financial turmoil began after President Yoon Suk Yeol declared emergency martial law late Tuesday, causing the South Korean won to plummet to a multiyear low and local assets to decline in overseas markets. The finance ministry assured that it would provide unlimited liquidity support until the stabilization of the stock, bond, short-term funding, and foreign currency markets is achieved.Finance Minister Choi Sang-mok, who also serves as deputy prime minister for economic affairs, reiterated the government's commitment to addressing the economic uncer tainties during a press briefing. He emphasized, "The government will do its utmost to ensure that the uncertainties facing our economy are swiftly resolved." In response to the crisis, a 24-hour government monitoring team was established to mitigate the effects on the real economy.The financial markets reflected the impact of these developments, with the KOSPI, the country's benchmark stock index, closing at 2,464.00, down 1.44 percent or 36.1 points from the previous session. The Korean won traded at 1,410.1 per dollar by 3:30 p.m., recovering slightly from its overnight decline. The local currency had reached a low of 1,442 per dollar during offshore trading hours, marking its weakest point since October 25, 2022.Market analysts like Kim Byung-yeon from NH Investment and Securities Co. suggested that the market volatility might be short-lived due to the rapid resolution of the martial law declaration and the government's swift intervention. The martial law, declared by President Yoon, accused the main opposition Democratic Party of collaborating with North Korea and hindering governmental functions. However, the crisis was quickly resolved when the National Assembly voted to overturn the measure, and the Cabinet formally approved its repeal on Wednesday morning.In a dramatic turn of events, Choi and all other Cabinet members submitted their resignations, as confirmed by the finance ministry. This marked the first imposition of martial law in South Korea in 45 years, adding to the political and economic tensions.
- September 13, 2026
