In the wake of President Yoon Suk Yeol's impeachment over a controversial martial law decree, South Korea's acting president, Han Duck-soo, has taken decisive steps to stabilize the nation and reassure international allies. Han engaged in a phone conversation with U.S. President Joe Biden, affirming the continuity of South Korea's foreign policies and the steadfastness of the U.S.-South Korea alliance. President Biden expressed confidence in the resilience of South Korea's democracy and reiterated the unwavering commitment of the United States to its ally.
Domestically, Han convened the cabinet and the National Security Council to maintain governmental stability and military readiness amid the political upheaval. The main opposition party, led by Lee Jae-myung, decided against pursuing Han's impeachment to prevent further national governance confusion. Lee proposed the formation of a National Stability Council for Governance to address pressing economic issues, including a slump in domestic demand and the need for a supplementary budget to support small businesses and infrastructure investments.
The impeachment of President Yoon, following his brief attempt to impose martial law, has introduced significant political uncertainty. The Constitutional Court is tasked with determining Yoon's fate within six months; a decision to remove him would necessitate a national election within 60 days. This period of uncertainty poses challenges to South Korea's economic stability and international relations, particularly concerning its ability to deter threats from North Korea.
In response to economic concerns, South Korea's central bank has pledged to utilize all available policy instruments to maintain market stability. The financial regulator has indicated readiness to expand market-stabilizing funds if necessary. Despite these assurances, financial markets have experienced volatility, reflecting investor apprehension amid the political turmoil.
Internationally, allies have expressed support for South Korea's democratic processes. U.S. Secretary of State Antony Blinken commended the country's democratic resilience, emphasizing the importance of adhering to constitutional procedures. However, the political crisis has led to the postponement of diplomatic engagements, including visits by foreign dignitaries and joint military exercises, underscoring the broader implications of the domestic unrest on South Korea's international standing.
