Seoul: On Sunday, South Korea’s acting president, Han Duck-soo, took decisive steps to reassure international allies and calm the financial markets following the impeachment and suspension of President Yoon Suk Yeol over his controversial martial law attempt. Han held a phone conversation with U.S. President Joe Biden, with both leaders reaffirming the strength of the South Korea-U.S. alliance and committing to further cooperation. Han emphasized that South Korea's foreign and security policies would continue without disruption, ensuring stability in the country’s diplomatic relations.

In a bid to further stabilize the situation domestically, South Korea's main opposition party announced it would not pursue impeachment proceedings against Han, despite his involvement in Yoon’s martial law decision. The Democratic Party cited the need to avoid further political chaos and confusion. Han, a respected technocrat, assumed the role of acting president in line with the constitution, as Yoon’s case is reviewed by the Constitutional Court.

Protests erupted following Yoon’s impeachment, with supporters of his removal and his defenders taking to the streets in large numbers. Despite the political turmoil, Han has pledged to exercise limited power during his temporary leadership, ensuring the country’s governance remains stable. With political uncertainty lingering, international partners are particularly concerned about the situation’s potential impact on South Korea’s ability to deter North Korea’s nuclear ambitions.

Biden reassured Han that the U.S.-South Korea alliance remained strong, and emphasized the importance of trilateral cooperation with neighboring Japan. Han, for his part, convened the cabinet and National Security Council, vowing to maintain military readiness and ensure national security amid the crisis.

While South Korea’s foreign partners have welcomed Han’s assumption of power, they face months of uncertainty until a new president is elected. The Constitutional Court has up to six months to decide Yoon’s fate, and if he is removed or resigns, a new election will be held within 60 days. In the interim, South Korea’s professional bureaucracy is expected to maintain foreign policy continuity, though clear leadership direction may be lacking.

Meanwhile, financial markets have shown signs of recovery, with South Korean shares rising for the fourth consecutive session on Friday. However, the country faces pressing economic challenges, particularly regarding domestic consumption and fiscal policy. The Democratic Party has called for a National Stability Council to address these issues, including a potential supplementary budget to support small businesses and boost investments in critical sectors like artificial intelligence and infrastructure.

In the midst of these political and economic challenges, South Korea’s financial authorities have pledged to take necessary actions to stabilize markets, with plans for an economic policy announcement by year’s end.