Shortly after lunch local time, the Kospi index had recovered somewhat to minus 1.7 percent.
The development varied otherwise on the leading Asian stock exchanges in the initial trading.
In Tokyo, the Nikkei 225 index was simultaneously fluctuating around zero, while the broader Topix was down 0.4 percent.
The Shanghai and Shenzhen composite indices were trading down 0.1 and 0.4 percent, respectively. Hong Kong's Hang Seng was up 0.1 percent.
South Korea's heavily criticized President Yoon Suk-Yeol is facing demands for resignation and threats of impeachment following the decision to declare a state of emergency on Tuesday, a decision he was immediately forced to retract.
South Korea's central bank has stated that it is ready to provide liquidity and take measures on the currency markets to ensure stability.
There is certainly some uncertainty, but the swift response from Korean authorities may mean that the impact on the region can remain limited, says Charu Chanana, investment strategist at Saxo Markets, to Bloomberg.
