Economic instability in the Euro-zone is having a suppressing effect on South Korean consumer behavior.

Retail sales slowed down in April. South Koreans focussed on the cost of living and home mortgages.

The Ministry of Knowledge Economy says figures show that department store sales in April were 3.4 per cent below the level of one year ago. Weak sales of apparel and home appliances were the key driving factors, according to the statement.

Discount stores experienced a 3.2 per cent increase in March. This, however, changed to a 2.4 per cent slide in April.

Discount store sales were hit by an outbreak of BSE (mad cow disease) in the US, and changing domestic regulations which have seen shops closed to protect small-scale businesses.

South Korea is Asia’s fourth largest economy.

GB