South Korea's Crypto Market Suffers Brief Chaos

South Korea's cryptocurrency market faced intense disruption following President Yoon Suk Yeol's unexpected declaration of martial law, causing a sharp divergence between local and global crypto prices.

Bitcoin plummeted over 30% on South Korean exchanges like Upbit, reaching the $60,000 range, compared to a mere 2% dip globally.

This stark contrast stemmed from local panic selling and a nearly 3% surge in the USD/KRW exchange rate.

XRP also dropped to $1.89 on Upbit for over an hour, prompting a flood of purchase orders as traders seized the rare buying opportunity.

BREAKING: 🇰🇷Following the announcement of "Emergency Martial Law" by South Korea's president, the Korean crypto market saw a big decline.

The following coins dropped as low as:$BTC: $61,965$SOL: $126$ETH: $2,100 pic.twitter.com/ZtXjWbUMoX

— SolanaFloor (@SolanaFloor) December 3, 2024

By press time, Bitcoin had rebounded to $95,962.13 on Upbit, closely aligning with its $96,638.24 global price, per CoinMarketCap.

The declaration momentarily plunged the nation's economy into chaos, triggering widespread price drops across cryptocurrencies and causing service outages on major South Korean exchanges due to overwhelming activity.

Crypto Market Stabilised After Parliament's Intervention

Data from Lookonchain revealed that over $163 million in USDT flowed into Upbit as whales placed substantial buy orders, capitalising on market volatility.

The #Korean crypto market has plummeted following South #Korea’s declaration of "martial law."

Many whales transferred large amounts of $USDT to #Upbit, likely aiming for bottom-fishing opportunities.

Within 1 hour after the declaration of "martial law", over 163M $USDT flowed… pic.twitter.com/ZnCiIrvoMj

— Lookonchain (@lookonchain) December 3, 2024

However, the chaos triggered by President Yoon Suk Yeol's martial law declaration faced swift backlash, including opposition from his own party leader, Han Dong-hoon.

Lawmakers acted decisively, voting early Wednesday to overturn the declaration and restore economic stability.

This intervention helped markets recover, with Bitcoin rebounding to $95,962.13 on Upbit, briefly surpassing the $96,000 mark.

South Korean won has partially recovered from earlier drop against the dollar and stabilized (for now) after the legislature voted to end martial law. https://t.co/PUsmucehHr pic.twitter.com/ko2EEFgI0Y

— Hudson Lockett IV 康河信 (@KangHexin) December 3, 2024

Calls for President Yoon Suk Yeol's Impeachment or Resignation

South Korea's political landscape plunged into turmoil after President Yoon Suk Yeol's controversial declaration of martial law late Tuesday, only to reverse it hours later amidst widespread backlash.

The unprecedented move, justified by Yoon as a measure to combat "pro-North Korean anti-state forces" and defend the nation's constitutional order, quickly escalated into a crisis as armed troops stormed the National Assembly in Seoul.

Parliament rejected the declaration unanimously, with even members of Yoon's ruling People Power Party joining the opposition in demanding its repeal.

Senior DP member of parliament Park Chan-dae said in a statement:

“It was clearly revealed to the entire nation that President Yoon could no longer run the country normally. He should step down."

Demonstrators gathered outside South Korea's National Assembly in Seoul, holding signs and chanting in protest against President Yoon Suk Yeol's sudden declaration of martial law the previous night. The rally, attended by citizens and lawmakers alike, called for the president's resignation, underscoring the widespread outrage sparked by the controversial move.

The Democratic Party, leading six opposition factions, called for Yoon to resign or face impeachment, with plans to submit an impeachment bill by Wednesday and vote by the weekend.

Within hours of the declaration, lawmakers defied a military security cordon and convened a session, unanimously voting to rescind martial law.

Outside, protesters cheered, chanting, "We won!" as tensions began to ease.

A South Korean presidential official said in a statement, in the first public comments since Yoon lifted martial law:

"There are opinions that it was too much to go to emergency martial law, and that we did not follow the procedures for emergency martial law, but it was done strictly within the constitutional framework."

Yoon's own party leader demanded the resignation of Defense Minister Kim Yong-hyun and the cabinet, signalling fractures within the ruling coalition.

Meanwhile, South Korea's largest labour union, the Korean Confederation of Trade Unions, pledged further protests and strikes until Yoon steps down.

The declaration had immediate economic repercussions.

South Korean stocks fell 2%, and the won briefly hit a two-year low before suspected government intervention stabilised the currency.

Finance Minister Choi Sang-mok and Bank of Korea Governor Rhee Chang-yong convened emergency meetings, pledging to support financial markets.

As the nation braces for continued political and economic uncertainty, the fallout from Yoon's misstep raises serious questions about his leadership and South Korea's democratic resilience.

🇰🇷🚨‼️ SUMMARY OF THE CRAZY EVENTS IN SOUTH KOREA:

1) The president of South Korea expected an impeachment from the opposition.

2) To prevent that, he declared martial law banning all political activity!

3) The Korean army came and closed off the parliament to prevent MPs to… pic.twitter.com/Ez5UcQutFR

— Lord Bebo (@MyLordBebo) December 3, 2024

The government said in a statement:

"We will inject unlimited liquidity into stocks, bonds, short-term money market as well as forex market for the time being until they are fully normalized."

Is This the End for President Yoon Suk-yeol?

39-year-old Seoul resident Kim Byeong-In noted:

"I'm deeply disturbed by this kind of situation, and I'm very concerned about the future of the country."

The National Assembly can impeach the president with a two-thirds majority vote, triggering a trial by the Constitutional Court.

A removal from office requires approval from six of the court's nine justices.

Currently, Yoon’s party holds 108 of the 300 seats in the legislature.

Should Yoon resign or be removed, Prime Minister Han Duck-soo would serve as interim leader until a new election is held within 60 days.

Reflecting on South Korea's first martial law declaration since 1980, Danny Russel, Vice President of the Asia Society Policy Institute, remarked:

"South Korea as a nation dodged a bullet, but President Yoon may have shot himself in the foot."