South Korean retail sales record double-digit growth

Department store sales jumped 40 percent in February against a year-ago period in the biggest year-on-year gain since the data became available from 2005 to suggest a rebound in private consumption in South Korea.

According to the Ministry of Strategy and Finance’s monthly economic review, department store sales jumped 39.5 percent on year in February, a record-high growth rate since monthly records became published.

Sales at discount stores also gained 24.2 percent, the largest increase since the 34.8 percent gain in Feb 2015.

Domestic credit card spending last month rose 8.6 percent from a year ago, rebounding for the first time in three months.

The boost in consumer spending was spurred by the Lunar New Year’s holiday in early February in a pent-up demand after protracted social distancing measures, the finance ministry noted.

The figure also goes against poor numbers a year ago when the country was swept up in the first wave of Covid-19 outbreak.

In Feb last year, the department store sales fell 30.6 percent. Discount store revenue declined 19.6 percent, the biggest drop since Jan 2015 when the figure was down by 24 percent.

An official from the finance ministry said that the low base effect from last year may have made the February figures look better than they really are.