President Yoon Arrested After Martial Law Attempt

In an unprecedented move, South Korea’s Seoul Western District Court issued an arrest warrant for President Yoon Suk Yeol on Dec. 31. This marked the first time a sitting South Korean president faced such legal action, as reported by the Korea Herald.

The arrest warrant comes on the heels of Yoon’s impeachment by parliament on Dec. 14, following his controversial attempt to impose martial law earlier in the month. The warrant, requested by a joint taskforce comprising the Korean National Police Agency, the Corruption Investigation Office for High-ranking Officials (CIO), and the Defense Ministry’s Criminal Investigation Command, was granted after Yoon failed to appear for questioning three times.

Yoon’s arrest warrant must be executed within seven days, though extensions are possible if necessary. Deputy Prime Minister and Finance Minister Choi Sang-mok is now serving as South Korea’s interim leader during this period of upheaval.

Martial Law Sparks Political and Market Chaos

On Dec. 3, President Yoon made a shocking announcement on live television, declaring martial law to combat “anti-state elements” and counter alleged threats from North Korea. The move, criticized as an overreach, ignited political outrage and market instability.

South Korea’s crypto sector felt the brunt of the shock. Domestically, Bitcoin prices plummeted by $30,000 in just six hours on major exchanges like UpBit. Analysts pointed to a liquidity crunch exacerbated by the sudden disappearance of significant market participants.

Globally, the crypto market saw a ripple effect. Bitcoin, Ethereum, and XRP all experienced declines of up to 4% as investors scrambled to react to the escalating crisis.

However, the volatility was short-lived. By Dec. 4, South Korea’s parliament forced Yoon to revoke martial law, triggering a rapid recovery in crypto prices.

A Catalyst for Market Movements

Interestingly, Yoon’s attempt to impose martial law followed a surge in retail crypto trading activity. Just a day earlier, South Korean traders had recorded their second-highest trading levels of 2024. Momentum-driven interest in altcoins like XRP, Dogecoin, and Stellar had dominated trading floors.

Despite the initial market shock, the crypto sector showcased its resilience. As the political situation stabilized, prices for key assets rebounded, signaling that investors were ready to move forward even as South Korea grappled with unprecedented political instability.

Yoon’s impeachment and the ensuing fallout underscore the intertwined nature of politics and markets, particularly in South Korea, a nation with one of the world’s most active crypto communities. The swift recovery of the crypto sector highlights the adaptability and determination of traders amid a backdrop of uncertainty.