South Korea's central bank (Bank of Korea) will hold an emergency meeting at 9 a.m. local time on Wednesday, after South Korean President Yoon Suk-yeol unexpectedly lifted martial law.

On Tuesday night local time, Yoon Suk-yeol declared a state of emergency and mobilized the military. Hours later, the National Assembly voted to overturn the state of emergency, forcing Yoon Suk-yeol to lift martial law early Wednesday morning. Yoon Suk-yeol stated: "All deployed troops have also been withdrawn."

A Citigroup analyst stated in a report: "In our view, the negative impact on the economy and financial markets may be temporary, as uncertainties in the political and economic environment may quickly diminish with the support of positive policy responses."

South Korea's Finance Minister Hong Nam-ki vowed on Wednesday that if necessary to stabilize the financial markets, unlimited liquidity would be injected into the financial markets.

Amid the turmoil in South Korea's political situation, significant volatility was seen in the U.S. stock market on Tuesday. The iShares MSCI Korea ETF (EWY), which tracks over 90 large and medium-sized South Korean companies, plunged 7%, hitting a 52-week low before closing down 1.6%.