South Korea's Financial Crisis: Unlimited Liquidity Amid Political Turmoil

South Korea is prepared to inject unlimited liquidity into financial markets following a political crisis. President Yoon Suk Yeol's martial law was lifted, causing economic instability. The move comes amid budget disputes between the government and opposition, impacting the country's financial outlook.

South Korea's government announced its readiness to provide unlimited liquidity to financial markets after President Yoon Suk Yeol rescinded a martial law order. This decision followed a parliamentary vote against the decree, resulting in a dip of the won to multi-year lows.

The announcement was made after urgent meetings held by Finance Minister Choi Sang-mok and Bank of Korea Governor Rhee Chang-yong. South Korea aims to stabilize stocks, bonds, short-term money and forex markets until normalcy is restored. Despite some recovery, the won remains near its lowest in two years.

Meanwhile, U.S.-listed Korean stocks fell alongside ETFs, and political struggles continue over budgetary conflicts, with the opposition cutting significant portions of the proposed budget. This could create fiscal challenges amid declining export growth.

(With inputs from agencies.)