South Korea’s stock market indices fell in their first trading after President Yeon Suk-yeol declared martial law yesterday, before Parliament unanimously lifted it, forcing the president to eventually back down.
The KOSPI index fell 1.44%, or 36.10 points, to 2,464 points at the end of today’s trading, and the Korea Automated Price Determination Index for stock dealers (KOSDAC) fell 13.65 points to 677.15 points.
The KOSPI 200, an index for overnight futures, also faced a decline of more than 5% during the session, before recovering slightly and closing down 1.8%.
Unlimited liquidity
Meanwhile, the Ministry of Finance said on Wednesday that the government would provide “unlimited liquidity” in the country’s financial market if necessary to help it stabilize, following the waves of turmoil in the markets that followed political tensions.
This pledge came following an emergency meeting of economic ministers chaired by Finance Minister Choi Sang-mok, according to the Korean News Agency (Yonhap).
“The government will provide unlimited liquidity until the stock, bond, short-term financing and foreign exchange markets fully stabilize,” the ministry said.
The ministry also said that all financial and foreign exchange markets, as well as stock markets, will operate normally.
Korean won
The South Korean currency (the won) has recovered against the dollar to the level of 1413.34 at the time of writing this report, from the level of 1442 against the dollar recorded shortly after the declaration of martial law, which is the lowest level since October 25, 2022, when the local currency was trading at the level of 1444.20 against the dollar. .
