Martial Law Declaration in South Korea Triggers Impeachment and Market Turmoil
Martial Law– South Korea’s abrupt declaration of martial law by President Yoon Suk-yeol has sparked nationwide unrest, with citizens, lawmakers, and even members of his own political party demanding his removal from office. The declaration, which briefly placed military control over civilian governance, was intended to counter growing opposition criticism but has instead led to widespread backlash.
Martial Law Declaration Triggers Immediate Outrage and Impeachment Proceedings
On Tuesday night, President Yoon declared martial law as a response to mounting criticism from the opposition left-wing party. The declaration, which lasted just six hours, faced severe pushback from citizens, the opposition, and even members of Yoon’s own People Power Party.
By Wednesday, a coalition of 191 lawmakers initiated impeachment proceedings against the president, with a bill sponsored by six political parties. According to MBC News, the bill is expected to be voted on this Friday or Saturday.
Market Volatility Strikes After Martial Law Declaration
The political upheaval caused by Yoon’s martial law declaration had immediate effects on South Korea’s local cryptocurrency market. Prices on major exchanges such as Upbit and Bithumb saw significant drops, and system outages occurred as trading volumes surged. Although prices have since recovered, analysts warn of continued volatility in the crypto market.
Min Jung, a research analyst at Presto Research, highlighted that further political developments, including impeachment proceedings, could introduce more volatility into the market. However, Jung noted that the impact is expected to be limited to the domestic South Korean market and short-term fluctuations.
Ripple and Other Cryptocurrencies Hit Hard by Political Uncertainty
The political unrest in South Korea is not only affecting domestic crypto prices but could also influence global markets, particularly for cryptocurrencies with a large trading base in the country. Seunghwa Lee, Head of DeSpread Research, explained that political instability in South Korea could exacerbate volatility in certain cryptocurrencies, such as Ripple (XRP), which is heavily traded in the country.
According to CoinGecko data, Ripple’s price saw a 15% drop at the time of the martial law declaration, a much sharper decline than other cryptocurrencies. Lee emphasized that South Korean investors have a significant influence on global crypto markets, and political events that dampen investor sentiment in South Korea could ripple across the global market.
South Korea is one of the largest and most active crypto markets in the world. In fact, the country’s national currency briefly surpassed the U.S. dollar as the most-traded currency for crypto transactions in the first quarter of this year. According to CoinMarketCap, the country processed around $32.6 billion worth of crypto trades in the last 24 hours alone.
The political instability in South Korea has been compared by some analysts to the actions taken by the U.S. Securities and Exchange Commission (SEC) in regulating the domestic crypto industry. Peter Chung, Head of Research at Presto, likened both situations to products of an “ivory tower” mindset — detached from reality and driven by self-serving narratives that ultimately harm society and lead to their own downfall.
Market Uncertainty and Impact on Crypto Sentiment
As South Korea continues to grapple with political uncertainty, both local and global markets remain on edge. While short-term volatility is expected, analysts agree that the influence of South Korea’s crypto market on global markets cannot be ignored. Investors should remain vigilant as the situation evolves, particularly in relation to assets heavily traded in South Korea like Ripple.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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