Jakarta – The South Korean Ministry of Finance has announced the government’s move to activate a financial market stabilization fund following the lifting of the military emergency status. The fund prepared amounts to 40 trillion won or US$ 28.35 billion, which is equivalent to Rp 450.76 trillion (at an exchange rate of Rp 15,900).
Quoted from Reuters on Thursday (December 5, 2024), the Bank of Korea may purchase government bonds and expand its repo operations if needed. The Ministry of Finance will closely monitor the market and implement measures in accordance with the emergency plan if necessary.
As is known, the military emergency declaration by President Yoon Suk Yeol had an impact on the financial markets. Earlier, in a speech on Tuesday (December 3) evening, Yoon announced that a military emergency would be declared, accusing the opposition of paralyzing the government with “anti-state activities.”
On Wednesday (December 4) early morning, 190 members of parliament succeeded in entering the assembly, where they unanimously voted to reject the military emergency declaration and called for its revocation.
According to the constitution, a military emergency must be lifted if the majority in parliament demands it. Yoon provided various reasons to justify the first military emergency declaration in South Korea in more than 40 years.
“To protect liberal South Korea from the threats posed by North Korean communist forces and to eradicate anti-state elements that deprive the people of their freedom and happiness, I hereby declare a military emergency,” Yoon said in his speech.
