Coupang Stock Drops Over 5% Amid Martial Law Declaration In South Korea: Retail Turns Cautious

On Tuesday, South Korean president Yoon Suk-yeol passed an order declaring emergency martial law, including orders prohibiting labour strikes

Shares of Coupang Inc. ($CPNG), South Korea’s largest online retailer, tumbled over 5% on Tuesday afternoon following the shocking declaration of martial law in South Korea by President Yoon Suk-yeol, dragging down retail sentiment.

The order, announced Tuesday, includes measures prohibiting labor strikes and public gatherings deemed to incite social disorder, with all media now reportedly under the control of the Martial Law Command.

In a televised address, Yoon cited threats from North Korea and opposition party actions as catalysts for the decision.

While the political repercussions of the move are obvious to many commentators, the immediate economic fallout has investors concerned. The latest event has reportedly “shocked” the nation.

“The situation is fluid,” U.S. ambassador  Philip Goldberg has said.

The mood in Korea, meanwhile, was grim. South Korea's Parliament voted unanimously to end martial law, according to media reports.

“The economy of the Republic of Korea will collapse irretrievably,” Lee Jae-myung, leader of Democratic Party, reportedly said during an online livestream.

Retail sentiment on the Coupang stock turned ‘neutral’ (50/100) from bullish (61/100) a day ago, with some users fearing the situation was too uncertain. While some others saw an opportunity to invest.

Coupang, which popularized one-day delivery in Korea, has yet to comment on the developments.

The company’s third-quarter results showed diluted EPS of $0.40, a 1% year-over-year decline, attributed to operating losses in its Farfetch division.

Coupang stock is up 50% year-to-date.

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