On Tuesday night, South Korean President Yoon Suk Yeol made a startling announcement, declaring emergency martial law in response to perceived threats posed by “pro-North Korean anti-state forces.” This declaration was made during a televised address, emphasizing the government’s position amidst rising tensions.
Context of the Martial Law Declaration
President Yoon described the martial law as a necessary measure to safeguard the constitutional order of South Korea. In his speech, he stated, “I declare martial law to protect the free Republic of Korea from the threat of North Korean communist forces, to eradicate the despicable pro-North Korean anti-state forces that are plundering the freedom and happiness of our people, and to protect the free constitutional order.” This proclamation, however, came with significant repercussions, particularly in the political and financial spheres.
Reactions from the Financial Markets
The declaration of martial law sent shockwaves through South Korea’s financial markets, particularly affecting cryptocurrency trading. Reports from Arkham Intelligence highlighted a spike in trading activity, with substantial inflows of USDT (Tether) noted on the Upbit exchange. Just within an hour of the announcement, over 163 million USDT were injected into the platform, indicating a profound market repositioning as traders braced for upcoming volatility.
Following the announcement, Bitcoin prices on Upbit experienced drastic fluctuations. Initially, the price dipped below $75,000 amid the heightened political atmosphere, reaching a low of $71,814.99. However, the cryptocurrency later rebounded to approximately $96,347, illustrating the heightened sensitivity of traders to the unfolding political crisis.
Political Pushback Against Martial Law
The response to the martial law declaration was swift and assertive, with many in South Korea’s political arena expressing their dissent. Among them was Ki Young Ju, CEO of the analytics firm CryptoQuant, who voiced his concerns on social media regarding potential censorship and the implications of martial law on media freedoms. His initial alarm was palpable: “The South Korean president has just declared martial law. All media and publications must now be officially censored by the martial law authorities. We all need to take refuge in X.”
As chaos unfolded, representatives of South Korea’s National Assembly quickly convened, ultimately passing a resolution to repeal the martial law declaration. This move underscores the checks and balances within the country’s political system, as the National Assembly required the President to comply with their decision “without delay.” Despite this, the situation remains tense, with close scrutiny on President Yoon’s next steps and compliance with the assembly’s resolution. The declaration of martial law, now nullified, serves as a reminder of the fragile nature of political stability in South Korea amidst external pressures.