Jung Myung-ho, the director of the National Assembly’s Secretariat, reports the impeachment motion against Acting President Han Duck-soo during the first plenary session of the 420th National Assembly (extraordinary session) held in Yeouido, Seoul on Oct. 26. /Courtesy of News1

For the first time in constitutional history, the possibility of impeachment of the acting president has emerged, causing the KOSPI index to drop below the 2400 mark during the morning session on the 27th. The KOSDAQ index also faced a significant decline, falling into the 660 range.

As of 11:30 a.m. on the 27th, the KOSPI index stood at 2392.09, down 37.58 points (1.55%) from the previous day. At the same time, the KOSDAQ index recorded 664.96, down 10.66 points (1.58%) from the previous day.

The decline is gradually increasing compared to the early trading session. It is the first time since the 20th that the KOSPI index has fallen below the 2400 mark during trading, and this is also the first instance since the 20th that the KOSDAQ index has indicated 660.

Only individual investors are net buyers in the KOSPI and KOSDAQ markets, while both foreigners and institutions are in a "sell" position. Among the top 10 companies by market capitalization in the KOSPI market, all except SK Hynix are showing weakness. In the KOSDAQ market, only HLB shares among the top 10 companies by market capitalization are trading at a higher price than the previous day.

Political uncertainty is cited as the biggest cause of the sluggish stock market. Following the impeachment motion against President Yoon Suk-yeol, Acting Prime Minister Han Duck-soo is now also facing impeachment due to issues surrounding the appointment of constitutional judges. A vote on an impeachment motion against Han Duck-soo is anticipated in the National Assembly this afternoon.

Political uncertainty is triggering a weakening of the won; the exchange rate between the Korean won and the U.S. dollar has surpassed the 1470 won mark for the first time since 2009. When the exchange rate rises, foreign investors may incur currency losses.

Most experts believe that the value of the won will have difficulty stabilizing in a short period. Seo Sang-young, a researcher at the Mirae Asset Securities Research Institute, noted, "Since the collapse of the 1400 won mark following the December 3 martial law incident, the upward trend has been expanding," adding concerns that both the export and domestic markets may worsen and that it is difficult to achieve political stability to alleviate these issues.