Restrictions Outside Of Capital Tightened

The won is weaker, USD/KRW up 2.2 at 1153.00 with 2021 highs within touching distance at 1153.90.

• South Korea reported 1,318 coronavirus cases in the past 24 hours, down due to fewer tests over the weekend, but infections outside the capital area continued to pile up, triggering toughened restrictions. On Friday, the government extended the highest Level 4 distancing measures in the Seoul metropolitan area for another two weeks through Aug. 8. On Sunday the government said that it will adopt the toughest Level 4 virus curbs for two weeks from Tuesday through Aug. 8 to stem the spread of the pandemic. Kia, South Korea's second-biggest carmaker, said Sunday it will suspend one of its eight domestic plants on Monday as dozens of workers at the factory were infected with COVID-19 in recent days.
• There are no economic releases on the docket today, markets look ahead to GDP figures tomorrow. There could be some focus on the 2021 tax revision bill set to be released by the finance ministry, over the weekend the government passed its second biggest extra budget of the pandemic, worth KRW 34.9tn. The budget includes a cash handout to almost all residents.