South Korea’s Martial Law Announcement Triggers Sharp Crypto Losses

Cryptocurrency prices faced a sharp decline on South Korea’s leading exchange, Upbit, following a surprise announcement by President Yoon Suk-yeol on Tuesday night. At around 10:30 p.m. local time, Yoon declared an emergency martial law, citing North Korea’s increasing threats and the need to safeguard South Korea from internal anti-state forces. This marked a significant escalation in the country’s security measures, as martial law grants military control over civilian government functions in times of severe threat, with the last such declaration in 1980.

The announcement had an immediate impact on the digital asset market, causing major cryptocurrencies to plummet across platforms like Upbit, Bithumb, and Coinone. Bitcoin saw a sudden drop of approximately 12% on Upbit, while Tether (USDT) temporarily traded at a staggering 1,200 Korean won, equivalent to about 84 cents. Other popular altcoins, including Ripple (XRP), Shiba Inu, and Dogecoin, also experienced double-digit losses. The Upbit Market Index, which tracks the top 30 tokens by market cap, fell by 13.28% within 24 hours.

As a result of the surge in activity following the announcement, Upbit's mobile trading app became temporarily inaccessible, further exacerbating the volatility.