South Korean stocks rocked in U.S. trading after martial law declared

Published On Dec 3, 2024, 10:38 AM

South Korean stocks have seen a significant drop following the declaration of martial law by President Yoon Suk Yeol. This measure was taken to address parliamentary disputes related to budget considerations and has generated fears of instability within South Korea's economy. The iShares MSCI South Korea ETF (EWY) fell 6%, reaching a 52-week low. Other major companies such as Korea Electric Power, Coupang, KT Corporation, and Posco also experienced declines in their U.S.-traded shares.

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Stock Forecasts

EWYView EWY chart on TradingView

Negative

Investors should be cautious given the backdrop of political instability. With martial law in effect, the economic situation may deteriorate further, negatively impacting investments in South Korea.

KOREView KORE chart on TradingView

Negative

The decline of major sectors tied to the Korean economy is expected to continue as uncertainty looms over governance and market operations.

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