South Korea on pace for fifth consecutive day of gains

South Korean markets made early gains on Monday after the impeachment of President Yoon Suk Yeol on Saturday

The second attempt of the National Assembly of South Korea dismissal Yoon was successful as 204 lawmakers voted in favor of the motion, surpassing the two-thirds bar needed to impeach Yoon in the 300-seat chamber.

The vote was triggered by Yoon’s declaration of short-lived martial law, which threw the country into political turmoil.

The blue-chip Kospi rose on Monday morning but pared gains later in the session. The small-cap Kosdaq was 0.7% higher. If both indexes finish in positive territory today, it will be a fifth consecutive day of gains for both indexes.

Yoon had declared martial law in the afternoon on December 3, the first time in more than 40 years that Asia’s fourth-largest economy has seen martial law declared. he canceled the order hours later after 190 lawmakers voted against the declaration.

The Kospi has gained about 2.2% since the close on December 3, the last day of trading before the declaration of martial law, and the Kosdaq has gained about 1.1%.

Both indexes had rebounded strongly last week after that initially falling following the martial law flip-flop and the first failed impeachment vote. The Kospi reached its lowest level from November 2023 on December 9.

The Kospi has gained about 6% since the Dec. 9 low, while the Kosdaq has gained about 11% since then.

Opposition lawmakers had pushed an initial impeachment vote on December 7, but that failed to clear the 200 votes needed to impeach Yoon after lawmakers from his ruling People’s Power Party walked out of the chamber.

Since Saturday’s vote, Yoon has been suspended from state dutieswith Prime Minister Han Duck-soo as acting president.

The impeachment process is now it went to the Constitutional Court of South Koreawho then has to decide whether to confirm or reject Yoon’s removal.

According to the Constitutional Court Act of 1988, the Constitutional Court must make a final decision within 180 days. If Yoon decides to leave office before the court’s decision, the impeachment case is dismissed.

Investors will continue to assess the political situation as South Korean lawmakers and officials move to reassure allies, financial markets and the public.

South Korea’s finance ministry said in statements on Monday that uncertainties in the country’s political system have eased after Yoon’s ouster, stressing that the economic system remains stable, it reported. local media reports.

A day earlier, there was the new acting president of South Korea a call with US President Joe Biden i as reported assured him that South Korea would carry out its foreign and security policies without interruption.

The leader of South Korea’s main opposition party has also done so announced would not seek to impeach Han for his involvement in the declaration of martial law, and has instead offered to work with the government to ease tensions.