South Korean president says he will lift martial law after parliament rejects his declaration

South Korean President Yoon Suk Yeol declared he would lift emergency martial law early Wednesday morning. The declaration came hours after the National Assembly voted to overturn the president's decree issued late Tuesday night amid mounting protests and backlash from lawmakers.

Yoon said he has called for a Cabinet meeting to officially lift martial law, as per the Constitution. The military units that were deployed have also been withdrawn, Yoon announced.

"I will immediately convene a Cabinet meeting to accept the National Assembly's request and end martial law," Yoon said.

In his announcement which came around 4 a.m. local time, Yoon also called for parliamentary lawmakers to "immediately cease its reckless actions that paralyze the functions of the state, including repeated impeachment attempts, legislative manipulation and budget manipulation." In recent weeks, Yoon and the opposition Democratic Party, which holds the parliamentary majority, were in a political deadlock over next year's budget plan. Opposition lawmakers had also called to impeach several Cabinet members after several corruption and graft scandals.

Earlier in the night, the National Assembly had been barricaded by soldiers and police officers, blocking protesters and lawmakers from entering. But within three hours of Yoon's surprise martial law decree, 190 out of the 300 National Assembly lawmakers — including members of Yoon's People Power Party — gathered to overturn the emergency order. Under the country's constitution, the president is required to comply with the National Assembly's vote.

The shock move to enact martial law marked the first time in more than 40 years such a decision was declared in South Korea, a key Asian democracy and economic power. Yoon had accused opposition lawmakers of throwing the country into a political crisis. Under the martial law declaration, all political activities and acts that "incite social disorder" are prohibited.

"I declare martial law to protect the free Republic of Korea from the threat of North Korean communist forces, to eradicate the despicable pro-North Korean anti-state forces that are plundering the freedom and happiness of our people, and to protect the free constitutional order," Yoon said.

However, Yoon's martial law decree came as a surprise even to members of his party. The party's chair, Han Dong-hoon, and Seoul Mayor Oh Se-hoon both voiced their opposition to Yoon's martial law declaration on Tuesday night. Choo Kyung-ho, who is the leader of the People Power Party in the National Assembly, stated that he learned of the martial law declaration through the news.

Yoon, who was elected in 2022, had seen his approval ratings fall below 20% in recent weeks.

Democratic Party leader Lee Jae-myung earlier in the night cited concerns on the martial law declaration's effect on the economy. "The economy of Republic of Korea will collapse irretrievably, international trust will fall and foreign investors will withdraw," Lee said in a livestream earlier in the night on his way to the National Assembly.

The declaration roiled Korean markets. The won fell sharply against the dollar and earlier dropped 1% before paring some of its declines to trade around 1,418 won. The iShares MSCI South Korea ETF (EWY), which tracks Korean stocks fell about 1.6%.

After the National Assembly vote, the Bank of Korea's Monetary Policy Board announced it would hold an emergency meeting to discuss market stabilization measures for the following day.

The stock market will open as normal at 9 a.m. KST, the Korea Exchange announced on Wednesday morning.

The U.S. was not previously informed of Yoon's martial law decision. At a separate event, U.S. Deputy Secretary of State Kurt Campbell underscored the "ironclad" U.S. alliance with South Korea.

"We stand by Korea in their time of uncertainty," said Campbell.