Private consumption in S.Korea recovers ahead of traditional holiday

Private consumption in South Korea showed clear signs of recovery ahead of Chuseok holiday, or the country's Thanksgiving Day, indicating the economy may recover from the effect from Middle East Respiratory Syndrome (MERS).

Sales in department stores jumped 16.3 percent from Sept. 7 to 20 compared with the similar period of last year, the finance ministry said in a statement on Thursday.

The country's private expenditure tends to increase ahead of the Chuseok holiday that falls on four days from this Saturday.

The jump in sales showed that the economy may recover from the negative effect from the MERS outbreak that drove consumers to refrain from outside activity, including leisure and entertainment and even shopping, for fears of contagion. The infectious disease rocked the domestic economy especially in June and July.

Sales in discount chain stores rose 1.1 percent in the cited period. In June when the MERS peaked, the discount store sales tumbled 10.2 percent on a yearly basis. Sales in department stores plunged 11.9 percent in June.

Ahead of the Chuseok holiday, sales in convenient stores surged 61.8 percent, and those in supermarkets climbed 12.4 percent.

Foreign tourists came back to South Korea for travel. In June, the number of foreigners visiting the country sank 41 percent on a yearly basis, but the number entering South Korea edged down 0.6 percent for the first 20 days of this month.

Industrial activity showed recovering signs. Industrial usage of electricity, which reflects industrial activity, gained 7.4 percent for the first 20 days of this month compared with the same period of last year. In July and August, power usage declined 3.2 percent and 2.8 percent respectively. Endi