Citi's report states that the negative impact of the brief implementation of martial law in South Korea on the economy and financial markets may be temporary. Citi states that although there will be increased pressure of capital outflows, posing upside risks to the USD/KRW exchange rates - especially considering recent reductions in positions, South Korea's central bank and policymakers' 'proactive policy responses' may quickly mitigate uncertainties surrounding the political and economic environment. Citi emphasizes, for example, that the South Korean Finance Minister has stated their commitment to provide unlimited liquidity when necessary to stabilize financial markets. Citi adds that once the situation stabilizes, policymakers may increase fiscal support efforts, even though it implies increased expenditures in the long run.