An electronic signboard at Hana Bank in Seoul shows the benchmark KOSPI falling 24.9 points, or 1.02 percent, to close at 2,404.77 points, Friday. Yonhap
Financial markets in Korea remain more unstable due to the impeachment of Prime Minister and acting President Han Duck-soo, following President Yoon Suk Yeol's impeachment and suspension from office in mid-December.
The benchmark KOSPI went on a losing streak for the third straight day, Friday, when it retreated 24.9 points, or 1.02 percent, to end at 2,404.77 points.
The main bourse opened weaker, falling 0.42 percent to 2,419.46 points after the main opposition Democratic Party of Korea (DPK) filed a motion to impeach Han, Thursday.
The majority-wielding DPK approved the motion against Han, Friday, citing his stalled decision on filling three vacancies on the Constitutional Court.
The court, a nine-member body, currently has only six judges after the terms of three justices expired in October. It will decide whether to reinstate or remove Yoon based on treason charges brought against him.
The KOSPI followed a downward trajectory throughout the entire session, Friday, reflecting ongoing market instability.
In the onshore currency market, the Korean won depreciated against the U.S. dollar for the fifth consecutive session, Friday.
The local currency weakened by 2.7 won to close at 1,467.5 won, renewing the yearly low again after it breached the 1,460 level for the first time in more than 15 years, Thursday.
"The stock exchange and the currency markets are likley to become more volatile,” Jung Eui-jung, head of the Korean Stockholders' Alliance, said.
Jung was referring to Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok assuming the role of acting president over Han's impeachment.
Choi said earlier on Friday that “a dreadful scenario of acting presidents one after the other should be avoided.”
“An impeachment motion against the acting president equates to a motion against the entire Cabinet,” he said during a press briefing on behalf of the Cabinet members at the Government Complex Seoul. “The national economy and people's livelihood can't handle expanded political uncertainties stemming from such a scenario."
He added, “In a time of global trade wars and national emergencies, the absence of a control tower for state affairs would cause severe damage to our country's credibility, economy, national security and governance continuity.”
Before the passage of the impeachment motion, the finance minister asked the parliament to reconsider its decision for the sake of the country's economy and security.
Additionally, he requested the ruling People Power Party and the opposition parties to work in harmony so that the government can solely focus on economic stability and public welfare.
Choi separately hosted a meeting of the four chiefs of fiscal, monetary and financial regulatory policies earlier on the same day. The four included Bank of Korea Gov. Rhee Chang-yong, Financial Services Commission Chairman Kim Byoung-hwan and Financial Supervisory Service Gov. Lee Bok-hyun.
The finance minister vowed to “keep an eye on the financial markets around the clock,” adding that "the government will take all possible means to counter political risks spreading to the markets.”