An extraordinary political drama in South Korea is likely to compound an already gloomy outlook for Asia's fourth-largest economy, analysts say.

Expect volatility and negative price action across South Korean assets and interlinked markets, wrote Rory Green, at GlobalData.TS Lombard..

South Korean lawmakers began impeachment proceedings against President Yoon Suk Yeol after he briefly imposed martial law and then reversed course on that decision just hours later. Yoon claimed martial law was necessary to protect the country from "North Korea's communist forces" and to "eliminate anti-state elements.