Original | Odaily Planet Daily (@OdailyChina)
Author | Nan Zhi (@Assassin_Malvo)
Around 21:50 tonight, South Korean President Yoon Suk-yeol suddenly gave a televised speech announcing the implementation of 'emergency martial law.' Yoon Suk-yeol cited multiple reasons, claiming that the opposition party is manipulating the National Assembly and disrupting the country, and stated that efforts will be made to eliminate 'anti-national forces' within South Korea. Specific martial law measures are not yet known.
The Korean market plummeted across the board, while safe-haven assets rose.
After the news was announced, tokens on the South Korean exchange plummeted across the board and severe negative premiums appeared, with the Bitcoin KRW trading pair on Upbit spiking to below 90 million KRW (about 63,300 USD). Upbit subsequently experienced trading interruptions due to increased traffic, and as of the time of writing, the Bitcoin price had risen to around 128 million KRW (about 90,000 USD).
In addition to cryptocurrencies, various other assets were also affected, with the KRW/USD exchange rate dropping by about 1%, reaching a two-year low, while classic safe-haven assets such as gold and yen rose accordingly.
However, this news has not had a significant impact on the cryptocurrency market outside of South Korea. Market data shows that within 15 minutes after the announcement, Bitcoin briefly dropped by about 0.8%, then rebounded by 1.0%, with a cumulative increase of 0.2%. The only significant declines were in South Korean concept coins, such as ICX and AERGO, which both fell over 8%, while only LUNC rose against the trend by 3%.
What are the trends regarding martial law?
According to Jin Shi reports, the recent push by South Korea's opposition party for a series of legislation targeting the president's wife and the impeachment of public officials such as prosecutors may be the trigger for Yoon Suk-yeol's announcement of 'emergency martial law.'
CCTV reported that conflicts have already occurred outside the South Korean National Assembly, with crowds attempting to enter facing off against police. Shortly thereafter, President Yoon Suk-yeol appointed a martial law commander.
At 22:49, the South Korean martial law command issued the first martial law order, announcing that from 23:00 on December 3, 2024, the following matters will be announced throughout South Korea:
1. Prohibit all political activities, including activities of the National Assembly and local councils, political parties, political associations, gatherings, demonstrations, and other political activities. 2. Prohibit all actions that deny the free democratic system or attempt to subvert it, as well as fake news, fabricated public opinion, and false incitement. 3. All speech and publications are under the control of the martial law command. 4. Prohibit strikes, work stoppages, and gatherings that cause social chaos. 5. All medical personnel, including interns and residents, who are on strike or have left their posts must return to their original jobs within 48 hours. If violated, penalties will be imposed according to martial law. 6. Ordinary citizens will have their daily lives minimally disrupted, except for anti-national forces and other subversive elements. Those who violate the above martial law orders may be arrested, detained, and searched without a warrant according to Article 9 of the Martial Law Act of the Republic of Korea (special measures of the martial law commander) and punished according to Article 14 of the Martial Law Act.
Exchange Trends
Despite facing short-term price spikes and 'pulling the plug,' Upbit's trading and negative premiums have gradually returned to normal. According to Jin Shi reports, South Korea's stock exchange stated that trading will resume normally on Wednesday.
However, whether this political event will further escalate, and whether the Korean market will face another impact, remains unknown. Nevertheless, the short-term price spikes have allowed arbitrage users with KYC in the Korean market to profit significantly, so do not miss every major correction in the bull market.
