President Yoon Suk-yeol’s declaration of martial law has triggered a sharp rise in the won-dollar exchange rate and a significant selloff in South Korean assets, including the won. Investors have swiftly offloaded won-denominated holdings, seeking refuge in safe-haven currencies like the U.S. dollar.
By 11:30 p.m. on Dec. 3, the won-dollar exchange rate had surged to 1,422 won, up 18 won (1.28%) from the previous day’s close. Earlier in the day, the rate closed at 1,402.9 won on the Seoul foreign exchange market but soared past 1,430 won after news of the martial law declaration broke. This marks the highest level in more than two years—since Oct. 26, 2022, when the rate peaked at 1,432.4 won during trading hours—underscoring the heightened uncertainty gripping the market.
The stock market also experienced pronounced turbulence. Samsung Electronics shares dropped approximately 4.4% on the London Stock Exchange following the announcement. Initially trading at around $947, the stock fell to $914 by 10:54 p.m. and continued its decline to $905 by 11:10 p.m., reflecting the broader selloff in South Korean equities.
The cryptocurrency market was chaotic, with major digital assets plummeting on domestic exchanges. As of 11:40 p.m., Bitcoin was trading at 127.7 million won ($94,500) on South Korea’s leading exchange, UPbit, down 6.5 million won (4.8%) from the previous day. Ethereum and Ripple also sustained significant losses. Bitcoin, which had earlier reached 134 million won, plunged to 88 million won immediately after the martial law announcement, raising concerns about potential irregular trading activity.
Ripple, which had seen a surge in trade volume in recent weeks, halved in value from 3,500 won to 1,750 won in moments, while Dogecoin shed nearly 40%. Most cryptocurrencies listed on domestic exchanges suffered sharp declines, wiping out recent gains. Notably, prices on international exchanges remained stable during the same period. Meanwhile, heavy traffic on platforms such as UPbit and Bithumb led to temporary service outages, with some users unable to access sell functions for about 20 minutes.
