South Korean funds fall on US markets following martial law declaration

NEW YORK

Exchange-traded funds (EFT) linked to South Korean shares in the US and the country's currency, won, fell Tuesday after South Korean President Yoon Suk Yeol declared “martial law” because he said the opposition was involved in anti-state activities.

The iShares MSCI South Korea ETF, traded on the New York stock exchange with the code, EWY, fell 7% to $52.67 compared to its previous close.

The index, which saw the lowest level of the last year, recovered some of its depreciation after parliament agreed to lift the martial law declared by Yoon.

South Korea ETFs in the US decreased 3.9% to $54.52 as of 1650GMT.

Sharp decline in won

While the won suffered sharp losses, the US dollar gained about 1.5% against the won.

The won had fallen to its lowest in two years after the declaration.

On the other hand, shares of Coupang, one of the South Korean companies traded on US stock exchanges, fell 6%, shares of KT Corporation fell 3% and steelmaker Posco was off 5%.

Martial law

Yoon said martial law aims to eliminate pro-North Korean forces and protect the constitutional order of freedom.

Parliament, on the other hand, voted to lift the declaration by Yoon.

Yoon's decision to impose martial law came after the opposition Democratic Party rejected a budget bill in the parliamentary budget committee and submitted motions for misconduct against the state auditor and the attorney general.

*Writing by Gokhan Ergocun from Istanbul