Nation Restoring Democracy from Shock Caused by Martial Law Attempt

Tens of thousands of people, carrying candles and pickets, take to the street in front of the National Assembly in Yeouido, Seoul, to protest against President Yoon Suk-yeol’s issuing of martial law and demand President Yoon to step down from his presidency. (Photo by Yoon Suk-yong)

National Assembly Speaker Woo Won-shik.

Acting President Han Duck-soo. (Photos: National Assembly)

President Yoon Suk-yeol’s shock martial law declaration on Dec. 3 has delivered a shockwave across the nation, delivering an immense impact, from crashing stocks to the Korean currency’s plunging value against the dollar.

The martial law was lifted a few hours later as National Assembly Speaker Woo Won-shik convened an emergency session in which the parliament approved a bill to withdraw the martial law measure.

The fate of President Yoon is to be decided by the Constitutional Court, which will make a ruling on his impeachment, approved by the parliament.

An investigation into President Yoon is under way against alleged “crime of insurrection” over the declaration of martial law.

The chaos in the political, economic and other sectors is still lingering. The Constitutional Court is supposed to deliver a verdict on his impeachment within 180 days, meaning the chaos may still last for months.

If the court upholds the impeachment, the nation has to hold a presidential election within two months.

Prime Minister Han Duck-soo is serving as Acting President after taking over the presidency from President Yoon, who has been suspended.

In a cabinet meeting convened on Dec. 17, Acting President Han ordered the frontloading of next year’s government budget to stabilize the economy.

A tripartite consultative body among the government, the ruling and opposition parties designed to deal with state affairs is to be formed in order to pick up the pieces in the wake of a series of chaos, caused by martial law declaration and impeaching of the President.

Acting Chairman Kwon Seong-dong of the People Power Party said on Dec. 20 the ruling party accepted National Assembly Speaker’s proposal to form a tripartite body among the government, ruling and opposition parties designed to consult on public livelihood and national secturity, and discussions on the forming of the body’s members were under way with Speaker Won.

The speaker Woo Won-shik stressed the significance of the operation of a state affairs consultation body between the parliament and the government as soon as possible during his meeting with Acting Prime Minister Han Duck-soo on Dec. 15.

Deputy Minister and Mister of Economy and Finance Choi Sang-mok and other economic ministers, as well as financial authorities had come up with emergency steps to stabilize the national economy and financial markets.

Deputy Prime Minister and MOEF Minister Choi Sang-mok on Dec. 15 presides over the Emergency Ministerial Meeting on Economic Affairs at the Government Complex-Seoul. (Photo: MOEF)

Deputy Prime Minister and MOEF Minister Choi convened an Emergency Meeting on Macroeconomic and Financial Issues at the Korea Federation of Banks building.

The meeting was attended by the Governor of the Bank of Korea, the Chairman of the Financial Services Commission, and the Governor of the Financial Supervisory Service.

With the lifting of the martial law, which had caused instability, the foreign exchange market and overseas-listed Korean stock prices were gradually regaining stability.

The USD/KRW exchange rate (NDF) surged to 1,451 won following the declaration of the martial law but closed at 1,415.8 won.

The government decided to normalize the operation of financial and foreign currency markets, including stocks, following the lifting of the martial law on Dec. 4.

Financial authorities said they were ready to take steps to stabilize financial markets against volatility, including a 10 trillion won stock stabilization fund. The stock stabilization fund was created to overcome the global crisis in 2008.

Deputy Prime Minister Choi on Dec. 4 convened the Emergency Ministerial Meeting on Economic Affairs at the Government Complex-Seoul.

DPM Choi emphasized that the economic team would do its utmost to address current economic issues to ensure that the country’s economy, corporate activities, and people’s daily lives remain unaffected under any circumstances.

He also expressed his commitment to alleviating concerns about the state of the Korean economy; the government will maintain close communication with international credit rating agencies, U.S. economic authorities, domestic economic organizations, and financial markets, as well as swiftly sharing progress of the situation.

He also announced the operation of a 24-hour task force (led by First Vice Minister of the Ministry of Economy and Finance) to monitor real-time economic and financial conditions, and prevent any disruptions to exports.

In addition, DPM Choi underscored the critical need for a concerted effort among all economic stakeholders, citizens, businesses, and the government, for the stable functioning of the economy, now more than ever.

He requested all stakeholders continue their daily business and corporate activities in their respective areas to keep investment, employment, and consumption maintained at normal levels.

Deputy Prime Minister Choi convened an emergency meeting with the representatives of Korea’s six major economic organizations at the Korea Chamber of Commerce to share views on the current economic situation and discuss response measures.

Choi emphasized that the economic team will strive to resolve pressing issues faced by the industry and minimize the impact of domestic and international uncertainties so that planned investments, employment, exports, and other corporate activities proceed without disruptions under any circumstances.

The representatives of the economic organizations expressed concerns about drastically changing domestic and external conditions, including the inauguration of the new U.S. administration, and requested the government’s proactive attention to ensure that businesses carry out their activities stably.

DPM Choi stressed that it is more important than ever to make concerted efforts among all economic stakeholders — citizens, businesses, and the government.

He assured them that any difficulties encountered during business operations can be communicated through a range of channels, and the government would make every effort to address them as quickly as possible.

Furthermore, he highlighted that the government will closely monitor the situation and keep communication channels open to maintain the steadfast operation of the Korean economy.

On Dec. 10, Deputy Prime Minister Choi held a video meeting with U.S. Treasury Secretary Janet L. Yellen at the Government Complex-Seoul.

During the meeting, DPM Choi explained the stable governance of the Korean government and reaffirmed the close economic and financial ties between the two nations.

Deputy Prime Minister Choi held video meetings with senior officials of the global top three ratings agencies, including Marie Diron, Global Managing Director of Moody’s, and Roberto Sifon-Arevalo, Managing Director Global Head of Analytics and Research Sovereign & International Public Finance Ratings of S&P at the Seoul Government Complex on Dec. 12 to defend Korea’s credit standing.

Lotte Group Chairman Shin Dong-bin meets with U.S. President Donald Trump at the White House in Washington DC. on May 13, 2019. Chairman Shin became the first Korean business leader to have such a meeting with President Trump at the White House during his first-term. U.S. President Trump takes office for his second-term in January. 2025. (Photo: Lotte Group)