Retail sales in South Korea beat forecasts in February.

According to figures released by Statistics Korea, retail sales rose 2.8 per cent.

That is higher than the forecast 1.6 per cent and follows and revised 2.8 per cent contraction in January.

The figures are seasonally adjusted.

More significantly, year-on-year, sales rose 5.5 per cent – again ahead of estimates which were by consensus around 4.9 per cent.

In January, year-on-year sales slid 2.9 per cent.

The Statistics Korea figures are compiled from different data to that released in early March which reflected a strong surge in department store sales.

South Korea’s Finance Ministry on March 10 said combined sales at department stores owned by Lotte Shopping, Shinsegae Co and Hyundai Department Store rose by 7.1 per cent year-on-year.

This was the biggest rise since August last year when sales increased by 10.5 per cent.

It followed a drop of 11 per cent in January.

Analysts say the turnaround is related to the later timing of Lunar New Year in 2105 – the same reason given last week for a 14 per cent plunge in Hong Kong retail sales in January.

The Lunar New Year, a typically strong season for retail sales given the associated holiday season, occurred in January in 2014 and in February this year.