[News Today] KOREAN WON SHARPLY DOWN

[LEAD]
Financial markets took a turbulent turn. After the declaration, the won-dollar exchange rate at one point exceeded 1,440 won. Domestic stock futures and virtual asset prices also plummeted. Amidst these conditions, the government opted to keep the stock market open as usual today.

[REPORT]
On the foreign exchange market, the won-dollar exchange rate surged to 1,446 won at around 12:20 a.m. Wednesday.

It's the first time the rate passed the 1,440 won mark since October 25, 2022 when the U.S. Federal Reserve's fiscal tightening sharply strengthened the greenback.

The exchange rate somewhat stabilized after parliament passed a resolution demanding martial law be lifted. The dollar closed at 1,425 won when nighttime trading ended at 2 a.m.

The KOSPI 200 night futures option index and South Korea-related exchange traded funds listed on Wall Street also plunged more than 5% at one time before clawing back the losses.

Domestic virtual asset prices also suffered sharp declines.

Bitcoin prices fluctuated significantly, hovering around 130 million won(USD 91,900) for three days before martial law was declared. At one point, it dropped to 88 million won(USD 62,000) but later recovered to the 130 million won range.

Amid volatile financial markets, the stock market's opening remained uncertain. However, the government announced at 7:30 a.m. that the KOSPI and KOSDAQ would open as normal.

Also late Tuesday, Finance Minister Choi Sang-mok convened a meeting with the central bank governor and heads of the Financial Services Commission and the Financial Supervisory Service.

Participants vowed to mobilize all available means to stabilize the market, such as unlimited liquidity supply, in order to respond to market jitters.

The meeting took place at 7 a.m. Wednesday. Authorities are expected to announce response measures reflecting overnight market conditions.

The Bank of Korea also held a meeting in the morning to discuss market stabilization measures.

With eyes on financial and forex markets after the martial law crisis, the Financial Supervisory Service said preparations are underway to immediately activate necessary measures.