According to Odaily Planet Daily, South Korea-related assets plummeted after the South Korean president announced martial law, triggering investors' concerns about political instability and turmoil. The iShares MSCI South Korea ETF fell 5.1% in the US market, the biggest single-day drop since August 5. The won fell to its lowest level against the dollar in more than two years. Samsung Electronics, listed in London, fell 5%.
Arup Chatterjee, a strategist at Wells Fargo in New York, said domestic uncertainty in South Korea has increased under external pressure in recent weeks as markets begin to price in the possibility of higher U.S. tariffs under the new Trump administration. Other South Korean ADRs also fell. Coupang Inc. fell 6.9% in U.S. trading, while Posco Holdings Inc. and KB Financial Group Inc. also fell.