After President Yoon's martial law flip-flop, Kospi heavyweight stocks experience volatility in trade.

• On Wednesday, amid political turmoil, the South Korean heavyweight stocks experienced a decline during a volatile trading session.
• Samsung Electronics, a South Korean chipmaking giant, experienced a nearly 1% drop in shares, while LG Energy Solution, a battery-maker, and Hyundai Motor, an automaker, suffered wider losses of 2.8% and 2.4%, respectively.

On Wednesday, South Korean heavyweight stocks experienced a volatile trading session due to political upheaval, as President Yoon Suk Yeol reversed a surprise martial law decree that he had imposed just hours earlier.

Kim Byung-hwan, vice-minister of economy and finance, stated that the regulator was prepared to use 10 trillion won ($7.07 billion) to stabilize the stock market "at any time," according to local media Yonhap.

Samsung Electronics, a South Korean chipmaking giant, experienced a nearly 1% drop in shares, while LG Energy Solution, a battery-maker, and Hyundai Motor, an automaker, suffered wider losses of 2.8% and 2.4%, respectively.

SK Hynix's chip major performance was marginally lower in choppy trading, while Naver Corp and Samsung SDI experienced a decline in their share prices by over 2.5%.

The Kospi index was led in declines by Korea Gas Corporation, with a fall of over 14%.

The Kospi dropped 2%, while the Kosdaq fell 2.4%. Additionally, the South Korean won weakened by 0.05% to 1,415.78 against the US dollar.

On Tuesday night, Yoon declared martial law and mobilized the army to stop "anti-state forces," but reversed the decision early Wednesday morning after the National Assembly overturned his decree.

The political turmoil has negatively impacted the country's financial markets, causing capital outflows and weakening the currency, according to Chong Koon Park, head of Korea and Japan economic research at Standard Chartered Bank, in an email to CNBC.

An extraordinary board meeting was held at the Bank of Korea after the financial regulator pledged to provide "unlimited liquidity" to stabilize the financial markets.

The KOSPI, which represents more than 90 large and mid-sized companies in South Korea, experienced significant fluctuations in the U.S. overnight, falling as much as 7% to hit a 52-week low before trimming losses to close 1.6% down.