After ruling party abstains from vote, South Korea's President Yoon escapes impeachment.

• This week, the unexpected declaration of martial law by South Korean President Yoon Suk Yeol caused a political whiplash that affected the markets of Asia's fourth-largest economy.
• The impeachment motion against Yoon, supported by opposition politicians including the leading Democratic Party, required the approval of two-thirds of South Korea's 300-member National Assembly to pass.
• Recalling South Korea's history of military rule, the brief martial law episode caused a political standstill and sparked international worries about the stability of one of Asia's strongest democracies.

On Saturday, South Korean President Yoon Suk Yeol successfully survived an impeachment motion brought against him due to his failed attempt to impose martial law earlier this week. This was due to his ruling party's decision to boycott the vote, as reported by Yonhap news agency.

The impeachment motion, proposed by opposition politicians including the Democratic Party, required the backing of two-thirds of South Korea's 300-member National Assembly to pass. However, on Saturday, allied lawmakers walked out before the vote, preventing the necessary quorum for the impeachment vote.

If the impeachment measure fails on Wednesday, opposition members have previously stated that they will revisit the measure on that day.

If the motion were successful, Yoon would lose his presidential authority immediately, and a presidential election would have to be held within 60 days.

The bill to appoint a second special counsel to investigate First Lady Kim Keon Hee, who has been accused of exerting inappropriate influence, did not pass in a Saturday vote, according to Reuters.

Since the turn of the century, two heads of state have been impeached in South Korea: Roh Moo-hyun in 2004 and Park Geun-hye in 2016.

Martial law

In 2022, Yoon secured power in a close presidential election, but his approval rating was only 19% before he unexpectedly invoked martial law for the first time since the 1979 military coup.

According to NBC News reporting, he stated the importance of "preserving the constitutional order founded on liberty and eliminating disgraceful pro-North Korea anti-government organizations, which are infringing on the freedom and joy of our citizens."

The country's parliament passed a resolution to lift martial law with 190 members present and protesters on the streets. The political whiplash bled into the markets of Asia's fourth-largest economy. South Korea's Financial Services Commission announced it was ready to deploy 50 trillion won ($35.22 billion) in funds to stabilize domestic stock and bond markets if necessary, amid market volatility.

On CNBC's "Street Signs Asia" on Friday, Adarsh Sinha, co-head of Asia rates & FX strategy at BofA Securities, stated that the Korean won could experience significant fluctuations after the upcoming vote. However, he emphasized that the currency was also facing pressure due to fundamental factors, such as the possibility of the Bank of Korea reducing interest rates.

He stated that our view of the Korean won, not due to political reasons, is bearish.

Second attempt

The brief martial law episode in South Korea during its past military rule caused a halt in domestic politics and sparked international worries about the stability of one of Asia's strongest democracies.

According to Yonhap, Han Dong-hoon, leader of the ruling People Power Party, has expressed concerns that President Yoon could again take a "radical" action, such as reimposing martial law, and has therefore called for his suspension from duties.

The newly appointed Acting Defense Minister, Kim Seon-ho, has stated that he will not follow any such orders.

Since the Tuesday incident, Yoon made his first public appearance on Saturday, vowing not to attempt martial law again.

"Yoon stated in a televised address that he sincerely apologizes to those who were surprised by the martial law declaration and will not evade legal and political responsibility for it."