Korea's martial-law night: a political shock hits the won and KOSPI

Late on 3 December 2024, South Korea's president declared martial law — the first such declaration in decades. The National Assembly voted to reject it within hours and the declaration was lifted the same night, but the shock set off a period of acute political uncertainty that led to the president's impeachment later that month.

During the hours of the declaration, it was genuinely unclear whether the order would stand, how the military would respond, and whether markets would open normally. Authorities publicly pledged unlimited liquidity support before the next session.

The won weakened sharply to multi-year lows against the dollar in the immediate aftermath, and Korean equities traded lower over the following sessions before stabilising as institutional continuity became clearer.

The constitutional process timeline, whether policy continuity (including budget and FX policy) would hold through an impeachment, and how foreign investors would treat Korean assets during the transition.

The impeachment process concluded and a new administration took office in 2025; the episode left a persistent political-risk discount debate in Korean-asset coverage and demonstrated the resilience of Korea's market infrastructure under stress.

Korea is a core coverage region for this site. Won and KOSPI reactions to domestic political headlines are still read against this episode's template of shock, backstop and stabilisation.