S.Korea's July dept sales growth hits 5-mth low

Sun Aug 17, 2008 5:00pm EDT

SEOUL, Aug 18 (Reuters) - Annual growth in sales at South Korea's top three department stores hit a five-month low in July, government data showed on Monday, adding more evidence of slowing domestic demand in Asia's fourth-largest economy.

Combined sales at stores run by Lotte Shopping Co Ltd (023530.KS: Quote, Profile, Research, Stock Buzz), Shinsegae Co Ltd (004170.KS: Quote, Profile, Research, Stock Buzz) and Hyundai Department Store Co Ltd (069960.KS: Quote, Profile, Research, Stock Buzz) in July rose 5.9 percent from a year earlier, the Ministry of Knowledge Economy said in a statement.

The figure is the slowest growth since February, the data showed.

Earlier this month, the finance ministry said sales at the country's major department stores in July increased an estimated 5.0 percent from a year earlier.

Their sales in June had risen 11.2 percent from a year earlier and 11.3 percent in May.

Department store sales are closely watched in South Korea for clues about the strength of domestic demand, which generates more than half the country's gross domestic product.

Separately, the knowledge economy ministry said sales at the country's top three discount store chains in July rose 2.1 percent from a year earlier, compared with a 1.9 percent fall in June. (Reporting by Cheon Jong-woo; Editing by Jacqueline Wong)