South Korea-related assets tumble as won falls to two-year lows

On 3 December, South Korea-related assets tumbled after the South Korean president declared martial law, sparking investor fears of political instability and unrest. iShares MSCI Korea ETF fell 5.1% in the US market, its biggest one-day drop since 5 August. The won fell to its lowest level against the dollar in more than two years. Shares of London-listed Samsung Electronics fell 5 per cent.

Wells Fargo strategist Arup Chatterjee in New York said South Korea's domestic uncertainty has increased under external pressure in recent weeks as the market begins to digest the possibility of higher U.S. tariffs under the new Trump administration. Other South Korean companies also fell on ADRs. coupang Inc. fell 6.9 per cent in the U.S., while Posco Holdings Inc. and KB Financial Group Inc. also declined.