Virus Restrictions Relaxed; Extra Issuance All But Confirmed

Over the weekend South Korea announced it would relax COVID-19 restrictions from today. The changes mean nightclubs are able to reopen and other businesses can extend operating hours. Level 2 social distancing rules will be applied to Seoul and surrounding Gyeonggi province, a half notch lower from the previous 2.5 level. The rest of the country will stay at level 1.5.

• The government said the third wave still remains a concern, and the rules will be reviewed in two weeks time. South Korea reported 344 cases in the past 24 hours, down from around the 500 level when the spread was seen as a concern. Seoul and the surrounding area, the hotspot for infections, has averaged 282 cases in the past 7 days.
• Elsewhere Yonhap reported that the government are pushing for an extra budget bill that would facilitate touted cash handouts by March. The party's floor leader Kim Tae-nyeon said the stimulus would have to be bigger than previous, and would result in additional issuance – confirming the suspicions of bond investors. This budget will be for citizens who have been most affected by the pandemic, but there is chatter of further handouts to citizens to boost consumption further down the line.