South Korean Financial Markets Round-up

Shares Decline Amid Political Crisis
South Korean shares declined on Wednesday after the nation's president declared martial law and then rescinded it hours later, marking the biggest political crisis in decades in Asia's fourth-largest economy.

Currency and Bond Market Reaction
The won partially recovered from an earlier sharp drop, and the benchmark bond yield rose.

KOSPI Performance
The KOSPI closed down 36.10 points, or 1.44%, at 2,464.00.

Major Stocks Movement
– Samsung Electronics (KS:005930) fell 0.93%
– SK Hynix gained 1.88%
– LG Energy Solution slid 2.02%
– Hyundai (OTC:HYMTF) slipped 2.56%
– Kia gained 0.10%
– Naver lost 3.11%, while Kakao jumped 8.50%.

Political Developments
President Yoon Suk Yeol stated he would lift the surprise martial law declaration imposed just hours before, backing down in a standoff with parliament that had rejected his attempts to ban political activity and censor the media.

Market Liquidity Measures
The finance ministry announced readiness to deploy "unlimited" liquidity into financial markets after the political crisis sent the won diving to multi-year lows.

Overall Market Statistics
Of the total 938 traded issues, 176 advanced and 737 declined. Foreign investors net sold shares worth 408.8 billion won ($290 million) on the main board.

Year-to-Date Performance
The KOSPI has fallen 7.20% so far this year, losing 2.7% in the previous 30 trading sessions. The won has dropped 8.7% against the U.S. dollar this year.

Money and Debt Markets
In money and debt markets, December futures on three-year treasury bonds fell 0.08 points to 106.79. The most liquid three-year Korean treasury bond yield increased by 3.2 basis points to 2.621%, while the benchmark 10-year yield rose by 5.3 basis points to 2.759%.

> ($1 = 1,409.5900 won)