South Korea’s Leadership Crisis: Acting President Han Duck-soo Moves to Stabilize Markets and Alliances

South Korea’s acting president, Han Duck-soo, took decisive steps on Sunday to reassure the nation’s allies and stabilize financial markets following President Yoon Suk Yeol’s impeachment and suspension over a controversial martial law attempt. Han engaged in a phone conversation with U.S. President Joe Biden, emphasizing that South Korea would continue its foreign and security policies without disruption and work to maintain and strengthen the South Korea-U.S. alliance.

Opposition Party Declines to Impeach Acting President

In a bid to stabilize the political landscape, the main opposition party announced it would not pursue impeachment against Han for his involvement in Yoon’s December 3 martial law decision. Democratic Party leader Lee Jae-myung stated, “Given that the prime minister has already been confirmed as acting president and considering that excessive impeachments could lead to confusion in national governance, we have decided not to proceed with impeachment procedures.”

Han, a seasoned technocrat appointed by Yoon as prime minister, assumed the role of acting president by the constitution while the Constitutional Court reviewed Yoon’s case.

Demonstrators advocating for Yoon’s ouster gathered outside the National Assembly building, braving cold temperatures. Police estimated the crowd at around 200,000. Meanwhile, a smaller group of Yoon supporters, numbering approximately 41,000, rallied in central Seoul. One supporter, Yim Joung-sook, expressed her dismay, stating, “As a citizen, I’m sad that the impeachment motion was passed.”

Concerns Over North Korean Threat and Market Stability

Yoon’s unexpected martial law declaration has raised concerns among South Korea’s diplomatic partners regarding the country’s ability to deter North Korea’s nuclear threats. President Biden reassured Han that the U.S.-South Korea alliance remains strong, expressing confidence that the partnership will continue to be a cornerstone for peace and prosperity in the Indo-Pacific region during Han’s tenure.

In response to the political crisis, Han convened his cabinet and National Security Council, pledging to maintain military readiness to safeguard national security.

Despite the appointment of an acting president, international partners face a prolonged period of uncertainty until a new president is elected and a government is established. The Constitutional Court has up to six months to decide Yoon’s fate, with new elections required within 60 days if he is removed or resigns.

Democratic Party leader Lee highlighted the urgent need to address a slump in domestic consumption and proposed the establishment of a National Stability Council for Governance to discuss economic issues. He called for a supplementary budget to support small businesses and invest in infrastructure and artificial intelligence to mitigate energy shortages.

The South Korean parliament, controlled by Lee’s party, recently passed a 673.3 trillion won ($470.6 billion) budget bill for 2025, which cut the government’s original proposal. The government criticized the cuts for delaying projects aimed at supporting small businesses.

As the political landscape evolves, South Korea’s financial authorities have pledged to take necessary actions to stabilize markets, with the finance minister expected to announce an economic policy plan by the end of the year.