South Korea's President Yoon Suk Yeol withdrew the martial law declared by him after facing a strong rebuke from the National Assembly amid widespread protests on Tuesday.

In a surprise move, the President had imposed the law late at night after accusing the opposition of "anti-state activities".

Meanwhile, the main opposition, Democratic Party (DP), has demanded the President's resignation after the National Assembly voted to reject the martial law.

During an emergency meeting of the lawmakers at the National Assembly, the party said it would begin the process of impeachment unless the President himself quits his position.

"Yoon's declaration of martial law is a clear violation of the Constitution," the DP said in its resolution as quoted by Yonhap.

"This is a serious act of rebellion and a perfect reason for impeachment," it said.

The President had earlier declared the imposition of martial law with the People Power Party and the Democratic Party continuing to wrangle over next year's budget bill.

Last week, opposition MPs approved a significantly downsized budget plan through a parliamentary committee.

The opposition has slashed approximately 4.1 trillion won (USD 2.8 billion) from Yoon's proposed 677 trillion won budget plan, cutting the government's reserve fund and activity budgets for Yoon's office, the prosecution, police, and the state audit agency, Yonhap news agency reported.

The imposition of emergency martial law came as Yoon's approval rating dropped to 19 percent in the latest Gallup poll last week, with many expressing dissatisfaction over his handling of the economy and controversies involving his wife, Kim Keon Hee.