South Korean stocks sank and the currency approached a 15-year low against the dollar on Monday amid fears of a power vacuum at the top of government following President Yoon Suk Yeol’s failed bid to impose martial law last week. The won weakened 0.8 per cent against the dollar to Won1,435.6, its worst since October 2022, before making a modest recovery. South Korea’s Kospi stock benchmark fell 2.4 per cent to its lowest in more than a year.
The prime minister and Han Dong-hoon, the leader of Yoon’s conservative People Power party, said they would co-operate on operational matters related to “national governance”. But they have not spelt out how this would work in practice or given any timeline for Yoon’s departure. Opposition leaders and analysts argue there is no constitutional basis for the arrangement.