President Yoon Suk-yeol once declared martial law, causing the won-dollar exchange rate to surge during overnight trading.
In the Seoul foreign exchange market, at 2 a.m. on the 4th, the won-dollar exchange rate closed at 1,425.00 won, up 23.70 won from the previous day's closing price during daytime trading.
The won-dollar exchange rate sharply rose around 10:30 p.m. the previous day when President Yoon declared martial law, at one point soaring to 1,442.0 won. This is the highest level since October 2022.
President Yoon stated in an emergency address at the Yongsan Presidential Office, "I declare martial law to eradicate pro-North Korean forces and protect the free constitutional order."
Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, said, "To respond to potential market instability factors following the declaration of martial law, we will mobilize all possible financial and foreign exchange market stabilization measures, including unlimited liquidity supply."
The Bank of Korea announced that it will hold an emergency Monetary Policy Committee meeting in the morning to assess the market impact of President Yoon Suk-yeol's martial law declaration and discuss stabilization measures.
The aftermath of the martial law declaration was lifted about two hours and 30 minutes later. Around 1 a.m., news of the National Assembly plenary session passing a 'Resolution to Demand the Lifting of Martial Law' was reported, partially reversing the exchange rate's upward trend.
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