South Korea's currency climbs after President Yoon's impeachment
South Korea's currency and financial markets turned positive today after the impeachment vote against President Yoon Suk Yeol, after he attempted to impose martial law. The Korean won strengthened by 0.5% to 1,428.20 per Dollar, reflecting a reduction in political uncertainty. The benchmark Kospi Index also gained 0.9% in early trading, recovering from losses after Yoon's martial law declaration on December 3.
Impeachment vote: A response to martial law attempt
The impeachment vote took place over the weekend, with lawmakers voting 204 to 85 in favor of impeaching President Yoon. The impeachment process now awaits approval from South Korea's Constitutional Court, which has up to 180 days to decide on the matter. Court approval would mandate a presidential election within 60 days.
Acting President steps in amid market volatility
Prime Minister Han Duck-soo has taken over as Acting President during this time. Lee Jae-myung, head of the Democratic Party and a key player behind the impeachment push, is seen as a front-runner for the presidency. The political turmoil has caused major market volatility with South Korea's central bank and financial authorities promising to stabilize markets and keep a close watch on them.
Yoon's approval ratings plummet amid impeachment proceedings
President Yoon had defended his martial law decision as necessary due to a "disastrous crisis" but faced widespread opposition from lawmakers and the public. His approval ratings plummeted to 11%, with over 90% of South Koreans supporting his removal according to recent polls. The impeachment marks Yoon as the third South Korean President to face such proceedings, following Roh Moo-hyun in 2004 and Park Geun-hye in 2016.
Criminal investigations and potential leadership changes loom
The situation continues to be tense as criminal investigations against Yoon and his cabinet members are underway. Also, if Prime Minister Han is indicted, Deputy Prime Minister Choi Sang-mok could take over as Acting President. Outside the National Assembly, the public sentiment was palpable as crowds celebrated the impeachment vote with cheers and music. Despite Monday's market rally, analysts warn that unresolved issues like US tariff threats and slowdown in chip sector remain risks.
