SINGAPORE, Dec 4 (Reuters) - South Korean shares fell on

Wednesday amid the country's biggest political crisis in decades

as lawmakers called for the impeachment of President Yoon Suk

Yeol after he declared martial law only to reverse the move

hours later.

The surprise declaration late on Tuesday jolted markets,

leading to a sharp selloff in everything South Korean, with the

currency hitting a two year low on Tuesday but

stabilising on Wednesday. The benchmark Kospi Index lost

nearly 2%.

Here are some comments from fund managers:

SAT DUHRA, PORTFOLIO MANAGER, ASIA DIVIDEND INCOME, JANUS

HENDERSON, SINGAPORE

"The situation appears to be a political gamble that has not

paid off. I don't plan to add to Korea in this uncertainty.

Despite the market being cheap and having underperformed-which

is usually an enticing factor for investors-there's not enough

to see the won stabilise.

Investors have been wary of the so-called 'Korea discount'

and this only reinforces the sentiment. Prospects of an

impeachment, uncertainty from a leadership change, and an

overall unexciting macroeconomic outlook will deter foreign

investors. I would rather add to China against this backdrop. A

Trump administration introduces an additional layer of

uncertainty, particularly for exporters."

DANIEL TAN, PORTFOLIO MANAGER, GRASSHOPPER ASSET MANAGEMENT,

SINGAPORE

"In the longer term, the martial law episode would

accentuate the 'Korean Discount' -- an elevated risk premium --

with trading Korean-related assets, equities, FX and bonds. A

reflection of the 'Korean Discount', Korea's equity benchmark

KOSPI currently trades at 0.8 times one-year forward estimated

book value, while the MSCI World Index trades at closer to 3

times. Investors could require a bigger risk premium to invest

in the won and Korean equities.

However, we are unlikely to see extended selloffs in South

Korea, as long as the government and Bank of Korea maintain

their commitment to provide 'unlimited liquidity'."