WHITELIGHTNING//AIRESEARCH//IMMEDREL//12/05/24/0000PST

#SouthKorea Aftermath 12/05/24/0000PST: #martiallaw invalidated. Impeachment, parliamentary backlash, economic turmoil, judicial review, currency devaluation, central bank intervention, protests. DPRK allies with #Russia in #Ukraine #China uncommitted.

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south korea martial law aftermath

The aftermath of the martial law declaration in South Korea, which was imposed and then quickly rescinded by President Yoon Suk Yeol, has left the country in a state of significant political turmoil and uncertainty. Here are the key developments:

Public and Parliamentary Backlash

The declaration of martial law, announced by President Yoon in a late-night television broadcast on Tuesday, was met with fierce public backlash and unified opposition from lawmakers. The decree prohibited all political activities, including protests and party actions, and banned any attempts to undermine democracy or manipulate public sentiment. However, within six hours, lawmakers from all parties, including members of Yoon's own party, gathered in an emergency session of the National Assembly and voted unanimously to nullify the decree. This vote forced Yoon to rescind the martial law order

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Calls for Impeachment

The opposition parties, led by the Democratic Party of Korea, have filed a motion to impeach President Yoon, citing the martial law declaration as a grave overstep of his authority. The impeachment bill is set to be voted on in the coming days. Additionally, an impeachment bill has been proposed for Defense Minister Kim Yong-hyun, who has offered to resign and taken responsibility for the actions of the military during the martial law period

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Division Within the Ruling Party

The ruling People Power Party is deeply divided over Yoon's actions, with several members expressing strong opposition to the declaration of martial law. Party leader Han Dong-hoon publicly criticized Yoon's decision, calling it "flat out wrong" and suggesting that Defense Minister Kim Yong-hyun should be removed from his post. There are also calls for the entire Cabinet to resign

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Economic and Social Impact

The brief imposition of martial law caused a sharp decline in South Korea's asset prices and significant economic anxiety. The currency plummeted, and business owners expressed fears about the impact on their operations. The public is also worried about the potential long-term consequences of this political crisis

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International Reaction

The United States expressed "grave concern" over Yoon's martial law announcement but voiced relief upon its retraction, emphasizing the importance of democracy in the US-South Korea alliance. The international community is closely watching the developments, given South Korea's significant economic and strategic importance

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Judicial Review

The South Korean Supreme Court has announced that it will review the procedures followed in Yoon's declaration of martial law to ensure that they were in line with constitutional and legal requirements. This review aims to address concerns about judicial independence and integrity

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Ongoing Protests and Political Isolation

Protests continue, with demonstrators calling for Yoon's resignation and chanting slogans against martial law and dictatorship. The president's political isolation has deepened, with even members of his own party distancing themselves from him. This crisis has significantly eroded Yoon's political support and stability

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.In summary, the aftermath of the martial law declaration in South Korea has led to a severe political crisis, widespread public discontent, economic instability, and a heightened likelihood of impeachment proceedings against President Yoon Suk Yeol.

Full Text: south korea martial law aftermath

What were the immediate economic impacts of the martial law declaration

Currency Devaluation

The South Korean won experienced a sharp decline in value, reaching its lowest level against the US dollar since October 2022. This devaluation was a direct response to the martial law announcement, causing concerns about inflation and the cost of imports

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Stock Market Volatility

The stock market reacted negatively to the martial law declaration. The iShares MSCI South Korea ETF, which tracks large and mid-sized companies in South Korea, tumbled as much as 7%. Stocks of major companies such as Coupang, KB Financial Group, and POSCO Holdings also dropped significantly

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Economic Instability and Investor Confidence

The martial law announcement eroded investor confidence, leading to capital outflows and a dip in the stock market. Analysts warned that this political instability could deter foreign investment and impact South Korea's standing in global markets. The country's global reputation as a stable democracy and economic powerhouse was seen to have taken a hit

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Central Bank Intervention

The Bank of Korea prepared to intervene in the markets to stabilize the currency and boost short-term liquidity. Measures included injecting unlimited liquidity into stocks, bonds, the short-term money market, and the forex market to mitigate the economic fallout

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Impact on Small Businesses and Economy

Small business owners expressed concerns about the immediate economic repercussions, including increased import costs due to the devaluation of the won and the uncertainty that could scare away investors. The overall economic outlook for South Korea, already facing challenges such as youth unemployment and high household debt, was further complicated by this crisis

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Global Market Reactions

The martial law declaration and subsequent reversal caused significant volatility in financial markets, not only in South Korea but also in interconnected Asian markets. Analysts noted that the negative price action and volatility were likely to continue across Korean assets and interlinked markets

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