South Korean currency falls after president declares martial law

The South Korean currency fell sharply against the U.S. dollar on Wednesday after President Yoon Suk Yeol declared emergency martial law, reports from Yonhap new agency said.

The Korean won had slid to as low as 1,441 won per dollar during the nighttime offshore trading after Yoon declared martial law in a previously unannounced late-night address on Tuesday.

It was the lowest level since Oct. 25, 2022, when the local currency sank to 1,444.2 won during intra-trading.

In onshore trading, the local currency was quoted at 1,402.9 won against the greenback at 3:30 p.m., down 1.6 won from the previous session.

In declaring martial law, the South Korea accused the opposition of controlling the parliament and paralyzing the government by conducting “anti-state activities.”

Financial authorities are reviewing an option of closing the stock markets Wednesday amid chances of high market volatility, officials said.

“It is yet to be decided if the stock markets will be opened Wednesday,” a Korea Exchange official said.

The benchmark Korea Composite Stock Price Index and tech-heavy KOSDAQ markets are scheduled to open at 9 a.m. and close at 3:30 p.m.

An emergency meeting on the economy is under way, presided over by Finance Minister Choi Sang-mok, and attended by Bank of Korea Gov. Rhee Chang-yong, and the chiefs of the Financial Services Commission and the Financial Supervisory Service.

(PHOTO FROM YONHAP)