Seoul Shares Drop Nearly 2 Percent Amid Martial Law Chaos.

Seoul: Seoul shares experienced a significant decline of almost 2 percent late Wednesday morning due to heightened political uncertainties following President Yoon Suk Yeol's declaration of martial law, a decision that was later reversed within hours. The Korea Composite Stock Price Index (KOSPI) fell by 48.47 points, marking a 1.94 percent decrease, settling at 2,451.63 as of 11:20 a.m.According to Yonhap News Agency, foreign investors sold a net total of 385.43 billion won (approximately US$273 million) worth of stocks, which countered the buying activities of institutions and individual investors who purchased stocks valued at 358.58 billion won. The turmoil began late Tuesday when President Yoon declared emergency martial law, accusing the main opposition Democratic Party of being "anti-state forces" and obstructing the nation's operations with impeachment motions and a reduced budget bill. However, the National Assembly swiftly voted to overturn the declaration, leading Yoon to retract the martial law attempt early Wednesday, marking it as the country's first such motion in over four decades.The political instability affected most large-cap stocks, with market bellwether Samsung Electronics falling 0.9 percent, leading home appliance maker LG Electronics dropping 2.47 percent, and top carmaker Hyundai Motor seeing a 2.33 percent decline. Additionally, leading battery maker LG Energy Solution decreased by 2.64 percent, while Samsung SDI, another battery firm, fell by 1.92 percent.Despite the overall market downturn, some companies saw gains. KT, the No. 2 wireless services provider, increased by 2.06 percent, dominant tobacco company KT and G rose 1.14 percent, and Korea Zinc, the world's largest refined zinc smelter, surged by 5.97 percent. Korea Zinc is preparing for a shareholders meeting next month to discuss the appointment of new board members recommended by its largest shareholder, Young Poong, and private equity firm MBK Partners. This meeting comes amidst a prolonged management struggle initiat ed by Young Poong in September through a tender offer for additional stakes in Korea Zinc.In currency markets, the local currency traded at 1,413.6 won against the U.S. dollar at 11:20 a.m., a decrease of 10.7 won from the previous session.