Originally published on: December 03, 2024
In a shocking turn of events, South Korean President Yoon Suk Yeol has declared martial law in response to threats from North Korea, leading to a significant drop in the BTC/KRW pair on local exchange Upbit. The price of Bitcoin against the Korean won plummeted by almost 30% immediately following the president’s announcement, from 130 million KRW to 93.6 million KRW before stabilizing back at 126 million KRW.
President Yoon stated that the martial law declaration was necessary to protect the people’s freedom and safety from anti-state elements and combat unrest sparked by subversive forces. The Democratic Party has opposed the president’s order, fearing arrests by the military.
As citizens gathered outside government buildings and lawmakers in the National Assembly voted to block the martial law decree, tensions escalated in South Korea. The 13th-largest economy in the world is home to major companies like Samsung and SK Group, as well as prominent cryptocurrency exchanges including Upbit, Bithumb, Korbit, and Coinone.
Amidst the political instability, South Korea’s Democratic Party has postponed plans to tax crypto capital gains until 2027, providing some relief to crypto investors in the country. Stay tuned for more updates on the unique and dynamic crypto universe in South Korea by subscribing to our Markets Outlook newsletter for essential insights on investment opportunities and trading strategies delivered straight to your inbox every Monday.
