Retail sales log first decline in 40 months in August

Korea's retail sales posted the first decline in 40 months in August as domestic demand remained sluggish amid the economic slowdown, government data showed Saturday.

The value of combined retail sales at department stores, discount outlets and convenience stores reached 24.3 trillion won ($21.9 billion) in August, down 1 percent from a year earlier, according to Statistics Korea.

The August data marked the first on-year contraction since April 2009 when retail sales fell 1.9 percent.

Sluggish retail sales last month were mainly caused by labor strikes at top automaker Hyundai Motor Co. and the impact of powerful typhoons amid the economic slowdown, the government said.

The Korean economy grew a mere 0.3 percent in the second quarter from three months earlier, slowing from 0.9 percent in the first quarter.

Unionized workers at Hyundai Motor staged partial strikes for more than one month from mid-July to demand shorter working hours and higher wages. Sales of autos declined 11.7 percent on-year to 2.23 trillion won, the data showed.

Korea's consumer sentiment index stayed below par for the second straight month in September amid the protracted eurozone debt crisis, according to the central bank. (Yonhap)