Korean markets tumble amid political crisis

South Korean markets tumbled today as the nation grappled with an unprecedented political crisis surrounding President Yoon Suk Yeol. The KOSPI index fell 1.73% to 2,387.05 points, marking its steepest single-day decline since November 13, with losses reaching 2.23% in early trading.

The market downturn follows a failed impeachment motion against President Yoon over the weekend, but the situation has intensified with prosecutors reportedly launching a criminal investigation into his role in last week's attempted martial law declaration. Adding to the turmoil, Yoon's former defence minister has been arrested.

Major corporations felt the impact, with industry giants Samsung Electronics and Hyundai Motor each declining approximately 1%. The Korean won remained relatively stable against the dollar, though it had experienced significant volatility last week.

In response to the market turbulence, Finance Minister Choi Sang-mok announced the government's readiness to implement stabilization measures. The finance ministry and regulators pledged to execute contingency plans and introduce new measures to enhance foreign exchange market liquidity by the end of December.

The political uncertainty has extended to the military sphere, where multiple officials, including the acting defense minister, have stated they would refuse any new martial law orders. While the defense ministry maintains that Yoon remains commander in chief, his own party has called for his withdrawal from duties and resignation after boycotting the impeachment vote.

The deepening crisis presents unprecedented challenges for South Korea's financial markets and political stability, with investors closely monitoring developments in what has become one of the most significant political crises in recent South Korean history. Market analysts expect continued volatility as the situation unfolds.