Q1 Nationwide Retail Sales Increase by 6.3%...14 Cities and Provinces Show Growth

[Sejong=Asia Economy Reporter Kim Hyunjung] Due to the base effect from the impact of COVID-19 last year, retail sales increased in 14 cities and provinces nationwide in the first quarter of this year.

According to the 'First Quarter Service Industry Trends by City and Province' released by Statistics Korea on the 11th, retail sales in 16 cities and provinces nationwide in the first quarter increased by 6.3% compared to the previous year. Compared to the previous month, which was minus (-1.2%), it turned positive. Among the 16 locations, retail sales increased in 14 places excluding Jeju and Incheon, where duty-free shop sales are large, compared to the same period last year.

Lee Min-kyung, head of the Service Industry Trends Division at Statistics Korea, explained, "The base effect from the significant decrease in retail sales in the first quarter of last year and the re-reduction of the individual consumption tax on automobiles had a large impact," adding, "The revival of consumer sentiment is also appearing regionally."

By region, Daegu (9.5%) saw the largest increase in retail sales. Department stores (42.1%) surged significantly, and passenger car and fuel retail stores (14.9%) also increased sharply due to the impact of the individual consumption tax reduction. Daejeon (8.3%) followed. Other regions in order were Gwangju (5.1%), Ulsan (4.5%), Gyeonggi (4.5%), Chungbuk (4.4%), and Busan (4.3%). Seoul's retail sales increased by 3.0% compared to a year ago. Although supermarkets, miscellaneous goods stores, and convenience stores (-9.6%) and specialty retail stores (-2.9%) decreased, department stores (24.2%), duty-free shops (11.8%), and passenger car and fuel retail stores (10.4%) increased. However, Jeju (-8.1%) and Incheon (-2.6%) continued to decline in the first quarter this year due to decreased sales in duty-free shops and others.

Service industry production nationwide increased by 2.2%. Compared to the same period last year, it increased in 8 cities and provinces and decreased in 6. The remaining 2 showed no change. By region, Seoul's service industry production increased by 6.3%, showing the largest growth. In Seoul, the production of financial and insurance industries surged by 22.5% due to factors such as a booming stock market, leading the increase. Additionally, Daegu (2.6%), Gyeonggi (1.8%), and Gyeongbuk (1.8%) also showed favorable conditions in finance, insurance, and wholesale and retail sectors, increasing service industry production compared to a year ago. On the other hand, Jeju (-6.4%), Incheon (-4.9%), and Gangwon (-1.0%) saw a decrease in production.

This content was produced with the assistance of AI translation services.