Korean shares were boosted by the latest political actions as the Kospi index jumped 1.62%.
KOSPI – Daily Chart
The price of the KOSPI exchange was on track to test 2,500 as stability returns to the market.
South Korea’s opposition Democratic Party (DP) filed its second impeachment motion against President Yoon Suk Yeol on Thursday, with a vote ready for Saturday.
DP spokeswoman Gang Yu-jeong said, “We have decided to reintroduce the impeachment motion today. It will be reported to the National Assembly on the 12th, and the vote will take place at 5 p.m. on Saturday”.
Bloomberg said that the odds of the motion passing are much higher than the previous attempt. “I strongly urge members of the ruling People Power Party to avoid being on the wrong side of history and to join the vote for passing the impeachment,” DP lawmaker Kim Yong-min said.
“Some market watchers have been saying that his ouster will ease political uncertainty and help stabilize sentiment,” Bloomberg reported.
The opposition will need 200 votes in parliament to pass the motion after an attempt to impeach Yoon last Saturday failed.
“The opposition requires at least eight ruling party votes to pass the motion. So far, seven members have hinted that they would support moves to impeach Yoon”.
“We tried to find a better way than impeachment, but that other way is invalid,” PPP leader Dong-hoon said, “Suspending the president from his duties through impeachment is the only way for now, to defend democracy and the republic”.
Traders appear to be buying up undervalued stocks ahead of the Saturday vote. The KOSPI is down year-to-date by 6.17% and a return to political stability could see losses eroded.
