The scandals have ranged from stock manipulation to one involving the First Lady accepting a Dior bag.
He has been increasingly battling unpopularity and a political stalemate with opposition lawmakers who now control parliament.
The opposition has also moved to impeach cabinet members and prosecutors, including the head of the government’s audit agency for failing to investigate the First Lady.
A stalled budget bill this week appeared to be the latest challenge.
When he announced his shock decision to impose military rule, Yoon initially blamed North Korea, but then hit out at the opposition, accusing them of using their majority to paralyse his government’s agenda.
His second announcement – that he was reversing his earlier order – was met with cheers from protesters outside South Korea’s parliament early on Wednesday.
“Just a moment ago, there was a demand from the National Assembly to lift the state of emergency, and we have withdrawn the military that was deployed for martial law operations,” Yoon said in a televised address around 04:30 (1930 GMT Tuesday).
“We will accept the National Assembly’s request and lift the martial law through the cabinet meeting,” he added.
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