South Korea's retail sales in 2023 experienced the largest decline in 21 years. Durable goods, semi-durable goods, and non-durable goods all showed two consecutive years of decline, marking the first time since the IMF era that all product categories simultaneously underperformed. Consumer sentiment has contracted significantly, with food and beverage consumption declining for three consecutive years due to high inflation. The growth rate of service production has also slowed, creating difficulties in the recovery of domestic demand. Consumer sentiment is analyzed to have cooled further following the December 3rd emergency martial law incident.
