South Korean Markets End Mixed After President’s Impeachment
South Korean markets closed mixed on Monday after the impeachment of President Yoon Suk Yeol on Saturday. The Kospi, a blue-chip index, rose early in the day but later lost 0.22%, snapping a four-day winning streak, while the small-cap Kosdaq ended the day 0.69% higher, marking a fifth consecutive day of gains.
The impeachment of Yoon, South Korea’s first in over 40 years, was a result of his short-lived declaration of martial law, which was met with opposition from lawmakers and the public. The vote to impeach Yoon, which required a two-thirds majority, passed with 204 lawmakers in favor of the motion.
Yoon had rescinded the martial law declaration hours after it was announced, but the move was widely seen as a dramatic escalation of the political crisis, leading to his impeachment. The Kospi has gained 2.2% since the close of December 3, the last trading day before the martial law declaration, while the Kosdaq has gained 1.1% over the same period.
The markets had initially fallen after the martial law declaration, but rebounded strongly last week, with the Kospi hitting its lowest level since November 2023 on December 9. The Kospi has gained 6% since then, while the Kosdaq has recorded an 11% climb.
The opposition party leader, Han Dong-hoon, announced his resignation on Monday, citing growing strife within his party. Yoon has been suspended from state duties, with Prime Minister Han Duck-soo serving as acting president. The Constitutional Court will now rule on whether to confirm or reject Yoon’s removal, with a decision expected within 180 days.