South Korea: Retail sales hit record low on slowing demand

Retail sales in South Korea have been declining for two and a half years, due to weak demand for durable goods such as cars and clothing and non-durable goods such as food and beverages.

Statistics Korea data showed Sunday that the retail sales index averaged 100.7 points in the third quarter of this year, down 1.9 percent from the same period last year.

The data showed that quarterly retail sales figures have been falling since the second quarter of 2022, marking the longest period of stagnation since the statistics agency began tracking the data in 1995.

The durable goods sales index has been in a continuous decline since the first quarter of 2022, except for a slight increase in the second quarter of last year.

In particular, passenger car sales fell 8.4 percent and 13.2 percent in the first and second quarters, respectively, while home appliance sales also slowed, with the index remaining in decline for 10 consecutive quarters.

Sales of semi-durable goods, including clothing, also declined, with the category’s sales index falling 4.7% in the third quarter, marking a six-quarter decline. Non-durable goods, such as food and beverages, saw their sales decline for a record nine quarters in a row, reflecting the ongoing stagnation in domestic consumption.