Editor’s note: This story has been updated with additional details and to clarify a reference to South Korea’s parliament . The country’s parliament speaker is reportedly planning to convene a parliamentary session.
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."
Following Yoon's announcement, South Korea's Democratic Party called an emergency meeting for its lawmakers.
South Korea’s parliament speaker plans to convene a session, CNN reported, citing a local broadcaster; the entrance to parliament is reportedly blocked, with lawmakers unable to enter.
The South Korean president has accused the opposition party of turning the country into a "drug haven" and harming the country's public safety.
“The National Assembly has become a monster undermining liberal democracy, and the nation is in a precarious state, teetering on the edge of collapse," Yoon said.
Yoon told the public the martial law could cause some minor inconveniences, adding that he would attempt to minimize the impact on the public.
"We will eliminate the anti-state forces and restore the country to normalcy as quickly as possible."
Hang Dong-hoon, the head of the president’s People Power Party, said the imposition of martial law is “wrong” and said he would “stop it with the people,” the Associated Press reported. Opposition leader Lee Jae-myung said the declaration of martial law is “illegal and unconstitutional,” per the AP.
Yoon’s announcement marks the first period of martial law in South Korea since October 1979, the AP said.
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.
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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 4.5% to $54.15 Tuesday morning.
The Franklin FTSE South Korea ETF FLKR is down 6.34% to $17.74.
The Direxion Daily South Korea Bull 3X ETF KORU is down 13.2% to $4.01 in premarket trading Tuesday.
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