A shopper passes by boxes of fruit sold as gifts for Lunar New Year at a department store in Seoul, Jan. 7. Yonhap

Retail sales in Korea fell to the lowest level in 24 years in the first 11 months of 2024, data showed Sunday, reflecting weak consumer spending in the middle of a slowdown in economic growth.

According to the Korean Statistical Information Service (KOSIS), a website run by Statistics Korea, the index for retail sales fell 2.1 percent from a year earlier.

The rate marked the steepest year-on-year decrease since the same time period in 2003, when it slid 3.1 percent.

Under the circumstances, industry sources deemed retail sales might have fallen more than 2.1 percent for 2024.

The sources pointed out that President Yoon Suk Yeol's impeachment over his ill-fated martial law attempt in December exacerbated consumer sentiment, resulting in fewer gatherings and less shopping despite the holiday season.

From January to November 2024, sales of all durable, semi-durable and non-durable goods dropped 2.8 percent, 3.7 percent and 1.3 percent, respectively, from the previous year.

Durable goods refer to those that do not quickly wear out and can be used for a long time, usually three or more years. This includes TVs and cars.

Semi-durable goods are products that are used repeatedly over a period of time but have a shorter lifespan than durable goods, such as clothing and shoes.

Non-durable goods, including dish soap and personal hygiene items, are used up quickly or consumed only once and, therefore, replaced frequently.

The sales of all three dropped for the second straight year, which was unprecedented even during the Asian financial crisis in the late 1990s and the global financial crisis in the late 2000s, according to Statistics Korea.

Also a key indicator of sales, the service production showed sluggish growth.

It increased by only 1.5 percent year-on-year after peaking at 6.9 percent in 2022 and then slowed to 3.4 percent in 2023.

Analysts noted that the finding shows that domestic demand is undergoing an extreme slump.

They also warned that retail sales can worsen in 2025, as a strong U.S. dollar increases import prices and adds upward pressure on cooling consumer prices.

While consumer inflation remained below the Bank of Korea's target range of 2 percent, it grew from 1.5 percent in November to 1.9 percent in December.

To boost the ailing economy, the government plans to allocate 75 percent of this year's fiscal budget of 574.8 trillion won ($389.74 billion) in the first half.

The finance ministry came up with the plan after forecasting the country's GDP growth this year at 1.8 percent — a concerning level, given that the economy has rarely grown by less than 2 percent.