Now, with the opposition pushing to impeach Yoon and charge him with treason, investors likely face a prolonged leadership vacuum while the Constitutional Court deliberates.
Investors are bracing for a triple whammy as South Korea’s political turmoil adds another layer of uncertainty for the country’s struggling assets.
Even before President Yoon Suk Yeol’s shock martial law announcement, the equity benchmark Kospi and the won were among the world’s worst performers, partly due to fears they would be major casualties of Donald Trump’s second term. That was on top of worries about slowing domestic growth, which last week led to a surprise rate cut from the Bank of Korea.
