Key Points
- South Korean President Yoon Suk-yeol declared emergency martial law on December 3, citing threats from North Korea and the need to eliminate “anti-state elements,” marking the first such declaration since 1980.
- The announcement triggered significant market turbulence, with Bitcoin dropping 30% on South Korean exchanges before partially recovering, while other cryptocurrencies experienced double-digit declines.
Presidential Declaration and Political Tension
South Korean President Yoon Suk-yeol declared emergency martial law on Tuesday night at approximately 10:30 p.m. local time through a televised address. The president justified the measure as necessary to “safeguard a liberal South Korea from the threats posed by North Korea’s communist forces and to eliminate anti-state elements,” describing it as an “unavoidable measure” to ensure public safety and national sustainability.
The declaration has sparked immediate political tension, with Democratic Party leader Lee Jae-myung expressing serious concerns about potential military intervention in parliamentary affairs. Lee specifically warned about the possibility of military forces arresting members of South Korea’s parliament, while indicating that his party would attempt to challenge Yoon’s order.
Cryptocurrency Market Impact
The martial law announcement sent shockwaves through South Korea’s cryptocurrency markets, causing significant price volatility across major exchanges. On Upbit, South Korea’s largest crypto exchange, Bitcoin experienced a dramatic 30% plunge, dropping from approximately 130 million KRW to 93.6 million KRW, before rebounding to around 126 million KRW.
The market turbulence wasn’t limited to Bitcoin, as other cryptocurrencies also faced substantial selling pressure. Popular altcoins including Ripple XRP, Shiba Inu, and Dogecoin all recorded double-digit percentage losses. The Upbit Market Index, which tracks the exchange’s top 30 market-cap tokens, registered a 13.28% decline over the past day.
Technical Disruptions and Market Stress
The market volatility has led to technical challenges for major trading platforms. Upbit’s mobile trading app became inaccessible, likely due to an overwhelming surge in user traffic as traders rushed to respond to the situation. Tether USDT, typically a stablecoin, temporarily lost its peg on Korean exchanges, dropping to approximately 1,200 Korean won (around 84 cents), highlighting the extent of market stress following the declaration.
