New Coronavirus Cases Drop But Death Toll Hits Fourth Wave High

On the coronavirus front there were 1,882 new cases in the past 24 hours, down from 2,155 yesterday. The number of deaths hit the highest since the fourth wave of the pandemic began.

• On the budget front Finance Minister Hong said that the government plans to provide support in the form of emergency relief funds to people impacted by the pandemic before next month's Chuseok holiday. According to Hong the government will provide funds of KRW 11tn to those in the bottom 88% of earners. The government will also provide 90% of the KRW 4.22tn earmarked to small businesses and the self-employed before the holiday. Despite a number of extra budget passed in order to support the recovery most of the measures have focused on businesses rather than individuals.
• Meanwhile, the Financial Supervisory Service has asked local banks to increase standards for unsecured loans, it follows data this week which showed household debt rose to a record level in Q2. Rising debt levels are a concern for officials and is thought to be a key driver of the BoK's decision to hike rates.