South Korean President Yoon Suk Yeol lifted a surprise martial law declaration on Wednesday, just hours after imposing it, following unanimous rejection by parliament. The decision marked a sharp retreat for Yoon in what has become South Korea’s biggest political crisis in decades.

On Tuesday night, Yoon shocked the nation by declaring martial law to counter “anti-state forces” among his domestic political opponents. The move banned political activity, placed media and publishers under military control and saw helmeted troops attempting to enter parliament. Parliamentary aides pushed them back using fire extinguishers. Protesters outside the National Assembly celebrated the reversal, chanting, “We won!” and clapping in victory.

The main opposition Democratic Party (DP) strongly condemned Yoon’s actions, calling for his resignation or impeachment. "Even if martial law is lifted, he cannot avoid treason charges. It was clearly revealed to the entire nation that President Yoon could no longer run the country normally. He should step down," said senior DP lawmaker Park Chan-dae.

The White House expressed relief at the reversal. "We are relieved President Yoon has reversed course on his concerning declaration of martial law and respected the National Assembly's vote to end it," a spokesperson said. Earlier, U.S. Deputy Secretary of State Kurt Campbell voiced “grave concern” over the situation. The U.S. maintains 28,500 troops in South Korea as a deterrent against North Korea, highlighting the broader implications of domestic unrest.

Despite the declaration, Yoon cited no specific threat from North Korea, focusing instead on his domestic political opponents. Analysts warned that the crisis could destabilise South Korea. "Political uncertainty and domestic strife in South Korea is not our friend. Political uncertainty and domestic strife in South Korea is North Korea’s friend, however. You can be sure that North Korea is licking its chops," said Danny Russel, vice president of the Asia Society Policy Institute.

Financial markets responded cautiously, with the South Korean Won rebounding from a two-year low against the dollar and stock-linked exchange-traded funds cutting losses.

Yoon’s popularity has been waning since his narrow victory in 2022, the tightest presidential election in South Korean history. His People Power Party suffered a major defeat in April’s parliamentary election, losing control of the unicameral assembly to opposition parties.

This was the first martial law declaration in South Korea since 1980 when Chun Doo-hwan used it to suppress pro-democracy movements. While the current crisis has ended with Yoon’s retreat, the incident raises questions about his leadership and South Korea’s political stability. Russel added, “South Korea as a nation dodged a bullet, but President Yoon may have shot himself in the foot.”

As speculation grows about snap elections, South Korea faces heightened political uncertainty, with its democracy under strain.