Deep Tide TechFlow news, on December 4, Citibank research analysts stated in a report that the negative impact of South Korea's sudden imposition of martial law on the economy and financial markets may be short-term.

Although pressure on capital outflows will increase and pose an upward risk to the USD/KRW exchange rate—especially considering that recent positions have been reduced—the uncertainty surrounding the political and economic environment may quickly ease due to the 'proactive policy response' from the South Korean central bank and policymakers. For example, the South Korean finance minister has promised to provide unlimited liquidity when necessary to stabilize the financial markets.

Citibank added that once the situation is resolved, policymakers may increase fiscal support, although this means that spending will rise over a longer period. (Jin Shi)