The won had partially recovered to 1,416.1 won per dollar by 10:10 a.m., after the martial law was lifted early in the morning, though market participants said volatility would likely persist amid heightened political uncertainty.
Korean authorities moved swiftly to stabilize markets, with Finance Minister Choi Sang-mok saying at an emergency meeting with top financial officials that the government would supply "unlimited liquidity" until markets fully normalize.
The Bank of Korea convened an emergency monetary policy meeting at 9 a.m. to discuss market stabilization measures, while also holding a separate crisis response meeting with all senior officials present.
"As political uncertainty expands in South Korea, investment sentiment toward won-denominated assets will inevitably deteriorate," said Min Gyeong-won, a research economist at Woori Bank. "If foreign capital outflows intensify, this could further fuel exchange rate volatility."
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