15 hours Ago By Bloomberg News
South Korea’s opposition party filed a motion to impeach Acting President Han Duck-soo after he resisted pressure to appoint court judges who might increase the likelihood of removing President Yoon Suk Yeol from power. The Democratic Party proposed the impeachment motion and presented it at a plenary session of the National Assembly, with plans to hold the vote as early as Friday. This comes after Han held an emergency public address Thursday saying he would hold off approving three judges nominated by the opposition-controlled parliament, risking his own impeachment and potentially escalating tensions.
Han said the right to approve the judges rests with the president of the nation. “Consensus must first be reached in the National Assembly,” Han said in his address. “If the parties agree and submit a proposal, I will immediately appoint the Constitutional Court judges.
” The attempt to impeach Han comes as South Korea is still reeling from Yoon’s martial law decree issued early this month. Although his decision was reversed within hours, it sparked political turmoil, market volatility and a wave of protests, ultimately leading to Yoon’s impeachment. Han, who’s prime minister, has been serving as acting president since Dec.
14. The law requires at least six judges to confirm Yoon’s removal. Right now there are six judges in place with three vacant seats.
The Democratic Party, which successfully led the campaign to impeach Yoon, is looking to fill the remaining seats as quickly as possible, as this would lower the bar for removing Yoon to two-thirds of the judges from the current 100%. Yoon’s People Power Party had urged Han to refuse to appoint the nominees and boycotted the confirmation hearings. Yoon himself has vowed to fight for his return to power in the Constitutional Court, which is set to hold its first pre-trial hearing on Friday and has until June to make a decision.
The won extended losses, trading 0.6% weaker at 1,467.10 per dollar amid uncertainties over the nation’s leadership.
The currency is hovering around its fresh 15-year low, and remains the worst performer in Asia this year. Questions remain over whether Han should be considered president or prime minister if impeached. Suspending a president requires the support of 200 out of 300 lawmakers, while impeaching a prime minister needs 151 votes, a majority.
The DP currently holds 170 seats, according to the National Assembly website. Parliamentary speaker Woo Won-shik, a member of the DP, has told reporters that he would have the power to decide on the matter. If Han is impeached, Finance Minister Choi Sang-mok would step in as South Korea’s acting president.
From the eruption of the political turmoil, the Bank of Korea and government have vowed to provide “unlimited liquidity” if necessary as they seek to reassure market participants and cushion the economic fallout. The central bank on Wednesday said in a policy report it is planning to cut its benchmark interest rate next year after considering financial risks and economic conditions. The report came after consumer confidence slipped by the most since the Covid-19 pandemic was declared in 2020.
The political uncertainties weigh on an economy that was already expected to grow at a slower pace next year with Donald Trump returning to the White House with an array of protectionist policies that could hurt export-reliant nations like South Korea..
