MERS – Middle East Respiratory Syndrome – has taken its toll on Korea retail sales.

Sales data collected from department stores run by Hyundai Department Store, Lotte Shopping and Shinsegae Co show combined sales fell 10.7 per cent in June compared with June 2014.

That’s the fastest rate of decrease in five months in a market already suffering from subdued consumer spending.

The preliminary government data released today, Wednesday, shows the fall reversed two consecutive months of gains.

Further sales data collected from discount department stores paints a similar picture – a 9.7 per cent drop.

Korea’s government is growing increasingly concerned at the economic impact of the MERS outbreak which emerged in late May. Inbound tourist numbers have tanked and locals are venturing out less often to minimise contact with others, hitting the service industry hard.

It comes on the back of increasing global economic tensions centring on the likely collapse of the Greek economy and weakening export demand.