Seoul: The government has vowed to inject "unlimited liquidity" into South Korea's financial markets to stabilize them following the unexpected declaration of emergency martial law, as announced by the finance ministry on Wednesday. This pledge came after an emergency meeting led by Finance Minister Choi Sang-mok, aimed at addressing the financial turbulence caused by President Yoon Suk Yeol's sudden martial law declaration.According to Yonhap News Agency, the South Korean won had plummeted to a multiyear low, and local assets overseas saw a decline after the late Tuesday announcement of martial law. The finance ministry assured the public that it would provide unlimited liquidity until the markets, including stock, bond, short-term funding, and foreign currency sectors, are fully stabilized.Finance Minister Choi Sang-mok, who also serves as the deputy prime minister for economic affairs, reiterated the government's commitment to mitigating potential economic fallout. Speaking at a press briefing, Choi em phasized the urgency of resolving economic uncertainties swiftly and announced the establishment of a 24-hour government monitoring team to manage the situation's impact on the real economy.The KOSPI, South Korea's benchmark stock index, closed at 2,464.00, marking a 1.44 percent drop from the previous session, after hitting a low of 2,442.46. The Korean won, after an overnight decline, was trading at 1,410.1 as of 3:30 p.m., showing a slight recovery from its offshore trading low of 1,442 per dollar-the lowest since October 25, 2022.In efforts to address the incident's aftermath, Finance Minister Choi engaged with leaders from six major business lobby groups, including the Korea Enterprises Federation and the Federation of Korean Industries. He assured them of the government's commitment to minimizing uncertainties and ensuring that corporate activities, such as investments and exports, remain undisrupted.Market analysts suggested that the fallout might be less severe than initially feared, citing the brief duration of the martial law declaration and the swift government response. Kim Byung-yeon, an analyst at NH Investment and Securities Co., expressed optimism that the volatility in Korean financial markets would be a temporary event.The martial law, declared by President Yoon with accusations against the main opposition Democratic Party, was the first in 45 years. It was promptly reversed following a National Assembly vote, with the Cabinet formally approving its repeal early Wednesday. In response, Finance Minister Choi and other Cabinet members have tendered their resignations.
- September 13, 2026
