The swift repeal of martial law demonstrates the strength of South Korea's democratic institutions, as lawmakers were able to act quickly to counteract executive overreach.
Public sentiment is increasingly against President Yoon, as evidenced by large protests and calls for his resignation, reflecting a growing dissatisfaction with his leadership.
The economic implications of the political chaos are significant, with potential long-term effects on South Korea's credit rating and overall economic stability.
If political instability continues, there is a high likelihood that South Korea's credit rating will be downgraded, which could exacerbate economic challenges.
The ongoing protests may lead to further political mobilization against President Yoon, potentially resulting in renewed calls for impeachment or resignation.
The economic situation may worsen if the exchange rate continues to rise, impacting inflation and domestic consumption.
On December 3, 2024, South Korean President Yoon Seok-yeol declared martial law, marking a historic moment for the nation, as it was the first such declaration since the dictatorship of Chun Doo-hwan in 1980. This unprecedented move was met with immediate backlash, leading to a rapid political upheaval. The martial law was lifted within six hours after a majority of lawmakers in the National Assembly held an emergency session to vote against it, despite attempts by armed soldiers to enter the parliament. The swift repeal highlighted the resilience of the legislative body against executive overreach.
The impeachment motion against President Yoon failed to pass on December 7, 2024, primarily due to a walkout by ruling party lawmakers, which prevented a quorum. With only 108 seats in the National Assembly, the People Power Party (PPP) could not muster the necessary 200 votes for impeachment, despite significant public protests demanding Yoon's resignation. The failure of the impeachment motion has left the political landscape in South Korea in a state of chaos, with concerns about the government's stability and economic implications.
The declaration of martial law and subsequent political turmoil have had immediate economic repercussions. The South Korean won experienced a sharp decline against the dollar, rising to 1,440 won immediately after the martial law was declared. Experts warn that if the exchange rate exceeds 1,450 won, it could trigger a rapid economic collapse. The uncertainty surrounding the political situation has led to increased anxiety among the public, reflected in a surge in canned food sales by over 300% following the martial law announcement.
In a televised address, President Yoon acknowledged the anxiety caused by his actions and expressed his intention to stabilize the political situation. He attributed his martial law declaration to desperation, citing the opposition-dominated parliament's obstruction of his initiatives. Yoon's administration now faces significant challenges, including the potential for credit rating downgrades if political instability continues.
