South Korea’s finance ministry convened an emergency meeting on Tuesday morning to confront escalating volatility in financial and foreign exchange markets. Finance minister Choi Sang-mok vowed swift action, including “unlimited” liquidity injections and round-the-clock market monitoring. The ministry also highlighted the economy’s resilience, pointing to robust fundamentals such as $415.4 billion in foreign reserves and a net external financial asset position of $977.8 billion as of September.

Market turbulence stems from intensifying political uncertainty, including President Yoon Suk-yeol’s martial law declaration, the failure of the first round of impeachment and the National Assembly’s historic passage of an opposition-led budget on Tuesday afternoon. The $2.87 billion (4.1 trillion won) in cuts — made without government consent — targeted contingency funds and special activity budgets. One of Yoon’s justifications Yoon gave last week for declaring martial law was the main opposition Democratic Party’s “weaponization”  of the budget negotiation process.