FirstFT: South Korean President set to lift martial law in political climbdown

Good morning, I’m in for Ben while he takes a much deserved break. In today’s newsletter we’ll cover:

• A dramatic turn of events in South Korea

• How Nippon Steel ended up in a political firestorm

• What led to claims of corruption at Adani Group

South Korean President Yoon Suk Yeol said he would lift his order to impose martial law, hours after triggering a political crisis in the country.

Yoon, a hardline former chief prosecutor, said early this morning that he would withdraw the decree that he announced just last night. He had justified the martial law order as being necessary to “eliminate anti-state forces as quickly as possible and normalise the country”, but it was rejected unanimously by members of South Korea’s national assembly.

Yoon said troops deployed to enforce martial law had been withdrawn and the state of military rule would be lifted formally by his cabinet “as soon as members arrive”.

The climbdown came after Yoon’s plan was criticised by lawmakers across the political spectrum and drew concern from around the around the world. Analysts have questioned whether the South Korean leader will manage to serve out the rest term, which ends in 2027, after the apparent failure of his dramatic political gamble.

Here’s what else I’m keeping tabs on today:

• Australia growth figures: The nation’s Bureau of Statistics is set to release GDP figures for the third quarter.

• No-confidence vote in France: The French government is likely to fall when far-right and leftwing opposition parties hold a no-confidence vote.

• Andrew Bailey at the FT Global Boardroom: Chief economics commentator Chris Giles will interview the Bank of England governor at 9am GMT/5pm HKT. Register to watch online.

Five more top stories

1. China has banned shipments to the US of materials used in semiconductors and batteries in retaliation for Washington’s latest export controls. Here are the details on items that will be affected.

2. Investors’ rush into artificial intelligence stocks this year has overplayed the near-term potential of the technology, raising the risks of a “correction” in share prices, asset management powerhouse Vanguard has warned.

3. Nomura’s chief executive has apologised and taken a voluntary pay cut after one of the bank’s former wealth management employees was charged with attempting to murder and rob customers. Read the full story.

4. Syrian rebels have reached the outskirts of Hama, one of the country’s largest cities, dealing another blow to Bashar al-Assad’s regime. If the rebels seize control of Hama, it will be the first time the regime has lost control of the city since the civil war erupted after a 2011 popular uprising against Assad.

5. The founder of collapsed cryptocurrency lender Celsius Network pleaded guilty in a criminal case alleging that he misled investors about the company’s financial condition and used customer funds to manipulate the value of a digital token it issued. He faces a maximum sentence of 30 years in prison.

News in-depth

When Japan’s Nippon Steel agreed last year to buy US Steel, an American icon, the $15bn transaction was initially seen as a corporate triumph. But the mood quickly turned sour following fierce bipartisan pushback to the deal. The political backlash has sent a signal to other foreign investors: if you want to buy an American company, be ready for a fight.

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