South Korean President Yoon Suk Yeo announced on Tuesday that they have declared martial law to clear out pro-North Korea elements, per Reuters.

Yoon said the government administration has been paralyzed because of the opposition party's conducts and added that they will rebuild a free and democratic country through martial law.

Market reaction

The USD/KRW pair surged higher with the immediate reaction to this development and was last seen trading at its highest level in two years at 1,422.20, rising 1.4% on a daily basis.