Yoon’s Impeachment: Markets Brace For Stability Amid Leadership Vacuum

Seoul: The National Assembly’s decision to impeach President Yoon Suk Yeol is expected to help remove some of the uncertainties that have hit the financial and foreign exchange markets since Yoon’s shocking martial law declaration, experts said.

But concerns linger over South Korea’s urgent response to economic challenges amid the lack of political leadership, such as policy changes under the new Donald Trump administration and weak growth momentum.

The parliament passed the motion to remove Yoon from office in a 204-85 vote Saturday following his short-lived martial law declaration on December 3, reports Yonhap news agency. “Now that the impeachment motion is passed, the market is expected to be somewhat stable as uncertainties from the political side have very much been eased,” Lee Kyung-min, an expert from Daishin Securities, said.

Following the martial law declaration, the stock market tumbled to a yearly low and the Korean won fell sharply to well below 1,400 won against the US dollar. But the stock market has nearly recovered after financial authorities vowed to inject unlimited liquidity and implement additional measures in a bold and swift manner, if needed.