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Opposition submits bill in parliament to impeach Yoon

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SEOUL, Dec 4 (Reuters) - South Korean lawmakers

submitted a bill on Wednesday to impeach President Yoon Suk

Yeol after he declared martial law before reversing the move

hours later, triggering a political crisis in Asia's

fourth-largest economy, a major U.S. ally.

The surprise declaration of martial law late on Tuesday

caused a standoff with parliament, which rejected his attempt to

ban political activity and censor the media, as armed troops

forced their way into the National Assembly building in Seoul.

The main opposition Democratic Party (DP) called for Yoon,

who has been in office since 2022, to resign or face

impeachment.

Six South Korean opposition parties later submitted a bill

in parliament to impeach Yoon, with voting set for Friday or

Saturday.

"It was clearly revealed to the entire nation that President

Yoon could no longer run the country normally. He should step

down," senior DP member of parliament Park Chan-dae said in a

statement.

There were deep divisions in Yoon's ruling People Power

Party as well, as its leader called for Defence Minister Kim

Yong-hyun to be fired and the entire cabinet to resign.

Yoon told the nation in a television speech late on Tuesday

that martial law was needed to defend the country from pro-North

Korean anti-state forces, and protect the free constitutional

order, although he cited no specific threats.

Chaotic scenes ensued as troops tried to seize control of

the parliament building, parliamentary aides sprayed fire

extinguishers to push them back, and protesters scuffled with

police outside.

The military said activities by parliament and political

parties would be banned, and that media and publishers would be

under the control of the martial law command.

But lawmakers defied the security cordon and within hours of

the declaration, South Korea's parliament, with 190 of its 300

members present, unanimously passed a motion for martial law be

lifted, with 18 members of Yoon's party present.

The president then rescinded the declaration of martial law,

just about six hours after its proclamation.

Protesters outside the National Assembly shouted and

clapped. "We won!" they chanted, and one demonstrator banged on

a drum.

"There are opinions that it was too much to go to emergency

martial law, and that we did not follow the procedures for

emergency martial law, but it was done strictly within the

constitutional framework," a South Korean presidential official

told Reuters by telephone.

MARKETS VOLATILE

Despite the overnight drama,

Seoul appeared normal

on Wednesday, with the usual morning rush hour traffic in

trains and on the streets.

However, more protests were expected with South Korea's

largest union coalition, the Korean Confederation of Trade

Unions, planning to hold a rally in Seoul and vowing to strike

until Yoon resigns.

The U.S. embassy urged its citizens in South Korea to avoid

areas where protests were taking place, while some major

employers, including Naver Corp and LG Electronics

Inc, advised employees to work from home.

Financial markets were volatile, with South Korean stocks

falling about 1.3% and the won stable but close

to a two-year low. Dealers reported suspected intervention by

South Korean authorities to stem the won's slide.

Finance Minister Choi Sang-mok and Bank of Korea Governor

Rhee Chang-yong held emergency meetings overnight and the

finance ministry promised to prop up markets if needed.

"We will inject unlimited liquidity into stocks, bonds,

short-term money market as well as forex market for the time

being until they are fully normalised," the government said in a

statement.

Sales of canned goods, instant noodles and bottled water had

soared overnight, said a major South Korean convenience store

chain, which sought anonymity.

"I'm deeply disturbed by this kind of situation, and I'm

very concerned about the future of the country," 39-year-old

Seoul resident Kim Byeong-In told Reuters.

The National Assembly can impeach the president if more than

two-thirds of lawmakers vote in favour. A trial by the

constitutional court follows, which can confirm the motion with

a vote by six of the nine justices.

Yoon's party controls 108 seats in the 300-member

legislature.

'DODGED A BULLET'

If Yoon resigned or was removed from office, Prime Minister

Han Duck-soo would fill in as leader until a new election was

held within 60 days.

"South Korea as a nation dodged a bullet, but President Yoon

may have shot himself in the foot," Danny Russel, vice president

of the Asia Society Policy Institute think tank in the United

States, said of the first martial law declaration in South Korea

since 1980.

U.S. Secretary of State Antony Blinken said he welcomed

Yoon's decision to rescind the martial law declaration.

"We continue to expect political disagreements to be

resolved peacefully and in accordance with the rule of law,"

Blinken said in a statement.

South Korea hosts about 28,500 American troops as a legacy

of the 1950-1953 Korean War.

Planned defence talks and a joint military exercise between

the two allies were postponed amid the broader diplomatic

fallout from the overnight turmoil.

Sweden's prime minister postponed a visit to South Korea, a

spokesperson said, and Japan's lawmaker group on Korean affairs

cancelled a trip to Seoul set for mid-December.

NATO Secretary General Mark Rutte said the alliance was

monitoring the current situation in South Korea, but added that

its relationship with Seoul "was ironclad".

Yoon, a career prosecutor, squeezed out a victory in the

tightest presidential election in South Korean history in 2022,

riding a wave of discontent over economic policy, scandals and

gender wars.

But he has been unpopular, with his support ratings hovering

at around 20% for months.

His People Power Party suffered a landslide defeat at a

parliamentary election in April this year, failing to wrest

control from opposition parties that captured nearly two-thirds

of the seats.

There have been more than a dozen instances of martial law

being declared since South Korea was established as a republic

in 1948.

In 1980, a group of military officers forced then-President

Choi Kyu-hah to proclaim martial law to crush calls for the

restoration of democratic government.