On December 3, South Korean President Yoon Suk Yeol made a live television announcement declaring martial law in response to what he claimed were threats posed by North Korea’s communist forces. This move has sent shockwaves throughout the cryptocurrency market, with the price of Bitcoin (BTC) against the won dropping by approximately 30% on the local exchange Upbit.
The Impact on Bitcoin Price
According to data from Upbit, the BTC/KRW pair dropped from around 130 million KRW to 93.6 million KRW immediately following President Yoon’s announcement, marking a dip of 28%. However, the price quickly rebounded to more than 126 million KRW.
Why Martial Law Was Declared
President Yoon stated that he was declaring martial law in order to "eliminate anti-state elements" and ensure the freedom and safety of the people. He cited attempts by the country’s Democratic Party to impeach government officials as one of the reasons for his decision.
The Role of North Korea
In a statement, President Yoon mentioned the threats posed by North Korea’s communist forces, but it is unclear what specific actions or incidents led him to declare martial law. The South Korean president has been accused of using martial law as a means to suppress opposition and consolidate power.
Reaction from Lawmakers and Citizens
The Democratic Party leader, Lee Jae-myung, responded to President Yoon’s announcement by stating that the parliament would attempt to strike down his order. In a livestream on December 3, Lee expressed concern that the military would arrest members of the opposition party.
Lawmakers in South Korea quickly voted to block Yoon’s decree, with 190 out of 300 lawmakers voting against it. National Assembly Speaker Woo Won-sik stated that "the President should immediately lift the emergency martial law following the voting by the National Assembly… Now, the emergency martial law declaration is invalid."
Outside government buildings, citizens gathered to face off against members of the military. The situation remains tense, with many expressing concern about the potential consequences of martial law on democracy and human rights.
Global Implications
As one of the world’s 13th-largest economies, South Korea is home to several major companies that could be affected by political instability in the country, including Samsung and SK Group. The country is also a hub for cryptocurrency exchanges, with Upbit, Bithumb, Korbit, and Coinone all having headquarters there.
Cryptocurrency Regulation
In related news, lawmakers in South Korea’s Democratic Party had initially proposed taxing crypto capital gains tax starting in 2025 but announced on December 1 that they were delaying the plan by two years. This move has sparked debate among cryptocurrency enthusiasts and experts about the potential impact of government regulations on the market.
Conclusion
The declaration of martial law by South Korean President Yoon Suk Yeol has sent shockwaves throughout the cryptocurrency market, with Bitcoin price dropping by approximately 30% on local exchange Upbit. The situation remains tense, with many expressing concern about the potential consequences of martial law on democracy and human rights. As the world watches this unfolding drama, one thing is clear: the future of South Korea’s politics and economy hangs in the balance.
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