In contrast to the volatility in Asian markets, U.S. markets have shown resilience, with low volatility indices indicating they are not significantly affected by these developments.

Citi analysts caution that the current conditions may lead to increased capital outflows, highlighting the need for stronger fiscal strategies once stability is restored.

The economic implications of the political unrest may include logistical challenges for businesses, particularly in retail and export sectors, potentially disrupting supply chains.

Interestingly, despite the turmoil, Korean investors have shown a strong interest in Indian stocks, with significant net purchases in ETFs focused on the Indian market.

Overall, while the situation remains dynamic and could lead to market volatility, many experts believe that the long-term effects will depend on the government's ability to restore stability.

Despite the unrest, analysts like Charu Chanana from Saxo believe that the swift actions of South Korean authorities may limit the market impact, suggesting that any disruptions could be temporary.

However, Jason Thomas from Carlyle Group Inc. warns that increased volatility and a higher risk premium are likely in South Korea's markets following this incident.

Some traders remain hopeful that a quick resolution to the political standoff could lead to a market recovery, recalling similar past situations that resulted in gains.

On December 3, South Korean President Yoon Suk Yeol declared martial law to address what he described as 'anti-state' forces, amid rising tensions with an opposition-controlled parliament.

This political crisis has attracted international attention, with figures such as U.S. President Joe Biden expressing concern over its implications for regional stability.

Major economic organizations in South Korea, including the Korea Chamber of Commerce and Industry, are closely monitoring the situation, although they have yet to release official statements.

Public reaction has been marked by confusion and unease, as calm streets contrast sharply with the tense political atmosphere.