South Korean President Yoon Suk Yeol declared emergency martial law in the country Tuesday, sending ETFs covering the country's stock market down Tuesday in early U.S. trading.
What Happened: Yoon declared "emergency martial law" Tuesday for South Korea, accusing the country's opposition of sympathizing with North Korea and taking part in anti-state activities.
Yoon also accused the country's opposition of controlling the parliament, as reported by ABC News.
The announced emergency martial law was declared by Yoon during a televised briefing. The South Korean president promised to "eradicate pro-North Korean forces and protect the constitutional democratic order."
Yoon's conservative People Power Party has struggled against the liberal opposition Democratic Party since taking office in 2022. The opposition party controls parliament.
The South Korean president's approval rating has fallen in recent months as he struggles to push his agenda through parliament.
A budget bill has been stuck in parliament as a result of the battle between the two parties, the report said.
Yoon has also fought off calls for independent investigations into alleged scandals that involve top officials and his wife, upsetting his political rivals.
Following Yoon's announcement, South Korea's Democratic Party called an emergency meeting for its lawmakers.
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Why It's Important: News of the emergency martial law comes one day after South Korea's stock benchmark saw its strongest foreign inflow in over three months.
Experts said strong U.S. economic data helps South Korea, which is a heavy exporter to America, as reported by Bloomberg.
Kospi Index members had $385 million in global funds brought in over the last day, the highest total since Aug. 16.
Price Action: The iShares MSCI South Korea ETF EWY is down 4.44% to $54.19 Tuesday morning.
The Franklin FTSE South Korea ETF FLKR is down 3.33% to $18.41.
The Direxion Daily South Korea Bull 3X ETF KORU is down 12.99% to $4.02 in premarket trading Tuesday.
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