Korean stocks open lower after short-lived martial law declaration

South Korea’s financial markets tumbled on Wednesday following a night of political chaos, as President Yoon Suk Yeol briefly declared martial law only to withdraw the measure just hours later under pressure from lawmakers.

The Kospi, South Korea’s main stock index, opened 1.8 percent lower at 2,454.68, a drop of 45.42 points. The tech-heavy Kosdaq also fell 1.8 percent, opening at 678.35.

In currency trading, the South Korean won weakened significantly. The exchange rate surged to 1,418.8 won per US dollar, up 15.9 won from the previous day’s close, marking its highest level in over a year.

Blue-chip stocks saw broad declines. As of 10:26 a.m., Samsung Electronics, the market bellwether, fell 1.21 percent to 53,000 won, while semiconductor manufacturer SK hynix slipped 0.061 percent to 164,800 won. Hyundai Motor slipped 2.1 percent to 210,000 won. In the battery sector, LG Energy Solution dropped 2.64 percent to 386,500 won, while Samsung SDI fell 2.33 percent to 255,000 won.

Korean companies listed on the New York Stock Exchange also felt the shock. Shares of Coupang, the e-commerce giant, dropped 3.74 percent to close at $23.92. Earlier in the day, Coupang’s stock plunged nearly 10 percent before recovering some losses on news that martial law had been repealed.

Other major Korean companies traded in the US saw losses as well. Steelmaker Posco Holdings fell 4.36 percent. Korea Electric Power Corporation dropped 2.1 percent. Financial and telecom firms also declined, with KB Financial down 1.6 percent, SK Telecom losing 1.63 percent, and LG Display slipping 1.76 percent.