South Korean markets closed mixed on Monday after President Yoon Suk Yeol was impeached by the National Assembly. The ruling party leader, Han Dong-hoon, announced his resignation following support for the impeachment. The Kospi index rose initially but reversed gains, losing 0.22%. In contrast, the small-cap Kosdaq gained 0.69%, marking a fifth straight day of gains.
Yoon’s declaration of martial law on December 3 sparked widespread turmoil and opposition from lawmakers. The president rescinded the order hours later after 190 lawmakers voted against it. Since then, the Kospi has gained around 2.2% and the Kosdaq has seen an 11% climb.
A second impeachment attempt was successful with 204 lawmakers voting in favor of removing Yoon. The opposition party leader announced no plans to impeach Han, signaling a potential truce.
The market reaction suggests that investors are reassessing the political situation. South Korea’s finance ministry stated that uncertainties have eased, emphasizing stability in the economic system. The new acting president has assured US President Joe Biden of continuity in foreign and security policies.
A research note from Citibank predicts the Constitutional Court to uphold Yoon’s impeachment around mid-March next year, which may lead to a presidential election in early or mid-May 2025.
Source: https://www.cnbc.com/2024/12/16/south-korea-on-pace-for-fifth-straight-day-of-gains-after-yoons-impeachment.html