Foreign media follow 'non-regular cabinet' announcement by Yoon... Korean Won value plummets

Major foreign media outlets also reported on President Yoon's announcement of a non-regular cabinet. The value of the Korean Won plummeted to its lowest level in two years and one month following President Yoon's announcement of a non-regular cabinet.

On the 3rd, AP, CNN, and Reuters reported that "South Korea's President Yoon announced a non-regular cabinet in an emergency speech broadcast on TV," and "President Yoon criticized the opposition party (Democratic Party of Korea) for cooperating with North Korea and engaging in anti-national activities to hinder the government."

AP stated, "President Yoon has faced difficulties in advancing his agenda in the National Assembly dominated by the opposition party since taking office in 2022," and "the ruling party, the People Power Party, is in a situation where it is at odds with the Democratic Party over next year's budget proposal."

Furthermore, "President Yoon demanded an independent investigation into a series of scandals related to his wife, Kim Keon-hee, and has been receiving strong criticism from political circles," AP added. However, AP noted, "It is unclear what impact the non-regular cabinet will have on South Korea's national operations and democracy."

Chinese Xinhua News Agency and Al Jazeera also reported that "South Korea's President Yoon announced a non-regular cabinet," in an emergency report.

BBC reported that "President Yoon emphasized the need to strengthen the alliance with North Korea and the anti-national alliance in his announcement today."

The UK's Daily Mail stated, "The situation is not a war on the Korean Peninsula, but the level of tension is rising," and "President Yoon's announcement of a non-regular cabinet did not shock pro-Western countries in Asia."

CNN explained, "South Korea's President Yoon is blaming the Democratic Party, the main opposition party, for the criticism," and "President Yoon sees the opposition party as colluding with North Korea and the anti-national alliance."

The US economic magazine Barron's reported that after President Yoon's announcement of a non-regular cabinet, the MSCI Korea Index Fund (ETF), which invests in the Korean stock market, plummeted by 2.7% in pre-market trading.

The Financial Times (FT) reported that "South Korea's conservative President Yoon announced a non-regular cabinet late at night, criticizing the leftist group in the National Assembly for supporting North Korea," and "President Yoon emphasized that the Democratic Party, the ruling party, has hindered national activities."

In the Korean Won non-deliverable forward (NDF) market, the value of the Korean Won plummeted to its lowest level in two years and one month following President Yoon's announcement of a non-regular cabinet. The US dollar exchange rate fell by 1.4% compared to the previous trading day, trading at 1,423 won. At one point, it even reached 1,430 won. This is the lowest level of the Korean Won exchange rate since November 2022.

Kim Eun-jung, Reporter kej@hankyung.com