South Korean President Announces Plan To Lift Martial Law In TV Address To Nation

 

Watch Live: 

AP News: 

Reuters:

*   *   * 

Update (1115ET): 

President Yoon Suk Yeol announced on local television that he would lift martial law hours after being rejected by South Korea's National Assembly. This marks the largest flare-up in political turmoil in South Korea since full-scale martial law was declared in the spring of 1980.

For Premium Subs: 

In prediction markets, the Polymarket contract "Yoon out as president of South Korea in 2024?" peaked as high as 74% by late afternoon. 

*   *   * 

Update (1115ET): 

After the South Korean parliament rejected the short-lived martial law declared by President Yoon Suk Yeol, protests erupted in the streets of Seoul outside government buildings.

*   *   * 

Update (1115ET): 

Well, that was exciting—some midnight political infighting in South Korea. As we noted earlier: "There is no actual emergency." 

Now, the shortest emergency martial law in history appears to be over: 

• S. KOREA LAWMAKERS TO VOTE ON MARTIAL LAW LIFT

Followed by:

• S. KOREA PARLIAMENT PASSES REQUEST OF MARTIAL LAW LIFT

• SOUTH KOREAN PARLIAMENT VOTES TO BLOCK PRESIDENT'S MARTIAL LAW DECLARATION

*   *   * 

Moments ago, South Korean President Yoon Suk Yeol declared emergency martial law, accusing the opposition party of engaging in anti-state activities. This is not a headline you see every day.

Here are the headlines via AFP News:

• SOUTH KOREA'S YOON SAYS GOVERNMENT ADMINISTRATION HAS BEEN PARALYZED BECAUSE OF OPPOSITION PARTY CONDUCTS

• SOUTH KOREA'S YOON SAYS THROUGH MARTIAL LAW HE WILL REBUILD FREE AND DEMOCRATIC COUNTRY

AP News sheds more color on the situation: 

President Yoon Suk Yeol made the announcement during a televised briefing, vowing to "eradicate pro-North Korean forces and protect the constitutional democratic order." It wasn't immediately clear how the steps would affect the country's governance and democracy.

Yoon — whose approval rating has dipped in recent months — has struggled to push his agenda against an opposition-controlled parliament since taking office in 2022.

Yoon's conservative People Power Party had been locked in an impasse with the liberal opposition Democratic Party over next year's budget bill. He has also been dismissing calls for independent investigations into scandals involving his wife and top officials, drawing quick, strong rebukes from his political rivals.

All of this is unfolding as President Yoon Suk Yeol's approval rating continues to slide... 

More saber rattling from President Yoon Suk Yeol, as per the Philippines news outlet Rappler:

"Yoon said he had no choice but to resort to such a measure in order to safeguard free and constitutional order, saying opposition parties have taken hostage of the parliamentary process to throw the country into a crisis.

"I declare martial law to protect the free Republic of Korea from the threat of North Korean communist forces, to eradicate the despicable pro-North Korean anti-state forces that are plundering the freedom and happiness of our people, and to protect the free constitutional order," Yoon said.

South Korean news agency Yonhap News Agency said, "The [South Korean] defense minister has ordered a meeting of key commanders and called for tightened vigilance...after President Yoon Suk Yeol declared emergency martial law. The minister has also ordered the military to stay on emergency guard"

Police buses have blocked the National Assembly. 

Another view. 

South Korean soldiers are stationed outside Parliament. 

Armored personnel carriers were apparently on the streets. 

Ruling People Power Party Chair Han Dong-hoon criticized President Yoon Suk Yeol's emergency martial law, calling the decision "wrong," adding that he plans to stop the president's emergency action "alongside the people."

Our take...

For some context, the Korean newspaper Chosun Daily pointed out, "Martial law has been declared 16 times since the Republic of Korea’s establishment, including 12 instances of emergency martial law." 

In a recent Korea Times op-ed, Chun In-bum, a retired ROK Lieutenant General, stated: 

Recent comments and accusations suggesting that the Yoon Suk Yeol administration may be creating a situation to declare martial law have reignited interest in the topic within South Korea.

...

Martial law is divided into two types:

• emergency martial law, and

• security martial law.

Emergency martial law grants the government sweeping powers, such as suspending the warrant system, restricting freedom of the press, curbing publication rights and limiting assembly and association, as well as overriding the authority of civilian courts and government agencies. When martial law is declared, the president must notify the National Assembly immediately. If the National Assembly demands its termination by a majority vote, the president is legally obligated to comply. While the National Assembly retains legislative authority, there are exceptional circumstances under which a military regime can temporarily assume control, particularly in the event of a coup that disrupts the normal constitutional order.

Martial law has a troubled history in South Korea. It was first declared on Oct. 21, 1948, in response to the Yeosu-Suncheon Incident, a rebellion by South Korean soldiers who refused to suppress a left-wing uprising. Since then, it has been used by various regimes as a mechanism to maintain power, often at the expense of civil liberties. One of the most infamous instances occurred in 1979, following the assassination of President Park Chung-hee. Martial law was declared nationwide, leading to the suppression of pro-democracy movements and widespread human rights abuses.

These historical abuses of martial law have left a deep imprint on South Korean society, creating a strong public aversion to any suggestion of its reimplementation. The memories of authoritarian rule, censorship and political persecution are still fresh for many citizens, particularly for those who lived through the turbulent decades of the 1960s to 1980s. The last declaration of martial law, in 1979, marked a period of intense social and political repression and the eventual rise of a democratic movement that culminated in the democratic reforms of the late 1980s.

In markets, South Korea's won dropped 1% to a two-year low of 1419.28 versus the dollar. 

Ishares Msci South Korea ETF (EWY) falls 2.5% in premarket trading. 

Commenting on EWY trading, Goldman's Chris Lucas told clients that "block sellers were active in South Korea (EWY) – notable headlines regarding South Korea this morning."

Bloomberg's Sebastian Boyd said the turmoil in South Korea "should be limited as crisis is domestic..." 

Here's more from Boyd: 

None of this need impact US stocks or US risk appetite, except insofar as holders of South Korean assets seek safe havens amid the evident rise in political risk there. It's natural that bonds should gain as Korean traders buy Treasuries, but there's no apparent need for traders elsewhere to do so -- other than front-running that demand.

https://www.zerohedge.com/geopolitical/south-korea-declares-emergency-martial-law

Janux Catapults 70% On 'Unprecedented' Results In Prostate Cancer; Vir Goes For A Ride

 Shares of Janux Therapeutics (JANX) skyrocketed Tuesday on "unprecedented" results for an experimental prostate cancer treatment.

The company tested its drug in heavily pretreated patients with metastatic prostate cancer. After 12 weeks, all 16 patients experienced at least a 50% decline in prostate-specific antigen, or PSA. PSA is a protein produced by the prostate. Too much PSA in the blood can signal the presence of cancer.

Notably, 10 out of 16 patients experienced a PSA decline of 90% and five reached a decline of 99%. Three-quarters of patients were able to stay at a 50% decline in PSA, and half maintained a 90% decline for longer than 12 weeks.

Wedbush analyst Robert Driscoll called Janux Therapeutics' results "unprecedented."

"We believe the results exceed even lofty investor expectations and are increasing our peak sales estimate for JANX007 in the United States to $3.0 billion (from $1.7 billion) based on the improving clinical profile of the drug," William Blair analyst Matt Phipps said in a report.

In early trades, Janux stock launched more than 68% to 67.89. Shares opened at a record high. Meanwhile, shares of Vir Biotechnology (VIR), which is working on a similar drug, jumped 11.9% to 9.12.

'Masking' The Treatment

Janux Therapeutics' treatment uses a dual approach, bringing together immune cells called T cells and a target on prostate cancer cells known as PSMA. This allows the immune system to find and destroy the cancer cells.

Janux also uses a technology that allows the drug to enter the tumor microenvironment. Theoretically, this makes the drug safer by limiting its impact on nearby healthy tissue.

"With these results, we believe that Janux has further demonstrated the therapeutic window-widening value proposition of their 'masked' tumor-conditional T-cell engager (TCE) platform, TRACTr, and is now well-positioned to more aggressively evaluate JANX007 in diverse treatment lines and settings across the prostate cancer treatment paradigm," Leerink Partners analyst Jeffrey La Rosa said in a note.

He hiked his price target on Janux stock to 91 from 79, and reiterated his outperform rating.

Importantly, Janux Therapeutics' results appear to top Novartis' approved drug, Pluvicto, and Amgen's xaluritamig, which is in testing for prostate cancer treatment. Of eight patients that could be evaluated, 50% responded to Janux's treatment, William Blair's Phipps said. That compares to the 30% objective response rate in Pluvicto patients and 20% for xaluritamig recipients in Phase 1 testing.

Further, JANX007-treated patients lived for a median of 7.4 months before their cancer worsened. That compares "very favorably" to other treatments, "particularly given the heavily pretreated patient population in the trial," Phipps said.

He has an outperform rating on Janux Therapeutics shares.

Predictable Side Effect

Cytokine release syndrome, or CRS, episodes were largely low-grade, predictable and in the first cycle. CRS is an immune system flare-up tied to some cancer treatments that engage the immune system. There was one case of serious CRS, but in a patient who didn't receive proper mitigation treatment prior to a fifth round of JANX007, Phipps said.

"Based on this context, we do not view it as concerning and expect Janux's TRACTr platform to continue to deliver an improved CRS profile over conventional T-cell engagers," he said.

https://www.investors.com/news/technology/janux-therapeutics-prostate-cancer-treatment/

Groups urge Congress to rein in federal bureaucracy after Supreme Court slashes agency authority

 A coalition of 19 conservative and libertarian groups sent a letter to congressional leaders Wednesday urging them to act after a major Supreme Court decision clawing back federal agency power.

The coalition, led by Americans for Prosperity, told lawmakers they have a “generational opportunity” to rein in the federal bureaucracy after the high court in June overturned Chevron deference, which for 40 years had compelled courts to defer to agencies’ interpretations of ambiguous statutes. 

Overturning the doctrine marked a monumental victory for the conservative legal movement, and as President-elect Trump returns to the White House, Vivek Ramaswamy and Elon Musk have latched onto the decision in their ambitious plans to slash federal regulations as co-heads of the newly minted Department of Government Efficiency, or DOGE.

In the new letter, the coalition proposed that Congress delegate less authority to agencies in future legislation, streamline the procedures that allow lawmakers to overturn federal regulations, increase agency oversight and hearings, and take various other steps. 

The groups said the efforts are needed to “keep Congress one-step ahead of bureaucrats’ future attempts to regain lost influence and thwart government by the People.”

“[W]ith Chevron vanquished and a growing nationwide demand to dismantle the administrative state and its crippling regulatory barriers, we write to recommend prioritizing the actions below to build a strong foundation for Congress to meet the challenges of a post-Chevron landscape,” the groups wrote in the letter. 

The letter was led by Americans for Prosperity, a conservative political advocacy group funded by Charles Koch, the chairman of Koch Industries, who has helped spearhead major regulatory challenges. The 18 co-signers included Americans for Tax Reform, Heritage Action, Club for Growth, the Competitive Enterprise Institute and the Manhattan Institute. 

Many of the groups backed the effort at the Supreme Court earlier this year that toppled Chevron deference

The 1984 ruling had been cited in thousands of lower court decisions upholding regulations that affect wide aspects of American life, becoming a bedrock of modern administrative law. Anti-regulatory interests long looked to demolish the precedent as part of a broader attack on the “administrative state,” and found success with the Supreme Court’s 6-3 conservative majority.
 
The justices ruled along ideological lines that courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority, removing the deference that had long given the federal bureaucracy sweeping power. 

https://thehill.com/homenews/5018617-groups-urge-congress-to-rein-in-federal-bureaucracy-after-supreme-court-slashes-agency-authority/

Mexico Stops 2 Migrant Caravans After Trump Tariff Threat

 Days after Donald Trump announced that Mexican President Claudia Sheinbaum had "agreed to stop Migration through Mexico, and into the United States," or face 25% import duties on Mexican goods, it appears she's done just that.

Migrants walking in a caravan heading to the United States take a break in the municipality of Tapachula in Chiapas.Juan Manuel Blanco (EFE)

According to the Associated Press, Mexico has already broken up two migrant caravans consisting of approximately 4,000 people at their peak. Some of the migrants were bused to cities in southern Mexico, while others were offered transit papers, which allow them to travel across Mexico for 20 days.

According to migrant rights activist Luis García Villagrán, Mexico's actions against the two caravans appear to be part of "an agreement between the president of Mexico and the president of the United States."

According to the report, the first of the caravans started near the Mexico-Guatemala burder on Nov. 5, the day Trump was elected. It had traveled roughly 270 miles in the ensuing four weeks of walking, ending up in Tehuantepec in the state of Oaxaca when it was broken up.

"They took some of us to Acapulco, others to Morelia, and others from our group to Oaxaca city," said said Bárbara Rodríguez, a native Venezuelan who ended up catching a bus into Mexico City.

In a statement Saturday, the National Immigration Institute said the migrants voluntary accepted bus rides “to various areas where there is medical assistance and where their migratory status will be reviewed,” and said “upon accepting (the rides), they said they no longer wanted to face the risks along their way.” -AP

The second caravan made it around 140 miles to the town of Tonala in Chiapas state, where authorities offered the migrants the transit visas.

Meanwhile, Mexico's Supreme Court of Justice of the Nation (SCJN) has approved an injunction filed by the Jesuit Refugee Service and the Alaíde Foppa Legal Clinic to create a public registry of detained migrants.

https://www.zerohedge.com/political/mexico-stops-2-migrant-caravans-after-trump-tariff-threat

Scholz In Surprise Ukraine Visit Inspects Kamikaze Drones, Unveils $680M New Arms Package

 German Chancellor Olaf Scholz made a surprise visit to Kiev on Monday, which marked his first trip to Ukraine in two-and-a-half years, having arrived by train after which was greeted by President Zelensky.

"Winter is just around the corner, so there will also be winter equipment, as well as hand-held weapons and warming devices," a German defense ministry spokesperson said while commenting on the German leader's visit.

dpa/picture alliance

Scholz used the unannounced visit to unveil another massive military aid package at 650 million euros, or $680 million, to be transferred by the end of the year.

The supposed urgency of the aid is meant to underscore the alarm European leaders feel as Trump is set to enter the White House on Jan.20. He has promised to immediately begin negotiating an end to the war with Moscow.

"I would like to make it clear here on the ground that Germany will remain Ukraine's strongest supporter in Europe," said Scholz. "Ukraine can rely on Germany -- we say what we do. And we do what we say," Scholz additionally stated a post on social media.

Zelensky has in turn stated that his forces must become stronger amid reports that negotiations with Moscow are all but inevitable. He stressed that diplomacy could be an option "only when we know that we are strong enough."

Scholz while in the Ukrainian capital inspected Western and German supplied kamikaze drones, which have been described as a "low-cost barrage munition"...

Simultaneous to Scholz being in Ukraine, German German Foreign Minister Annalena Baerbock is on an official visit to Beijing, where she blasted that Chinese-made drones are showing up in the Ukraine conflict, deployed by the Russian side.

"Drones from Chinese factories and North Korean troops attacking peace in the center of Europe violate our core European security interests," Baerbock said just after a meeting with China's top diplomat Wang Yi.

She told Wang that "increasing Chinese support for Russia's war against Ukraine has an impact on our relations" and that this means "core German and European security interests are affected." The West has condemned the 'internationalization' of the Ukraine war, after North Korean troops joined the Russian side; however, the clear double-standard is seen in the fact that the US and Europe haven't batted an eye in providing massive NATO support to Kiev from the start.

https://www.zerohedge.com/geopolitical/scholz-surprise-ukraine-visit-inspects-kamikaze-drones-unveils-680m-new-arms-package