The ministry said people spent less as the number of holidays dropped by two days from a year earlier, although the government designated a temporary holiday on May 6 allowing a five-day break during the first week of May.

There were 11 red-letter days in May this year, including weekends and a temporary holiday, down from 13 days the previous year.

Sales at super supermarkets, mostly run by large retailers, also slid 5.4 percent on-year, the data added.

Sales at convenience stores, in contrast, continued to grow by a large 0margin, jumping 14.8 percent on-year last month, helped by a rise in cigarette sales and cold beverages.

The latest figure came a day after the Korean government slashed its growth forecast by 0.3 percentage point to 2.8 percent, citing faltering exports and tepid domestic demand, coupled with the British vote to leave the European Union, or Brexit.

Exports of Asia's fourth-largest economy have been on a steady decline since the first month of last year, extending their losing streak to a record 17 months in a row.

Prolonged low oil prices and Brexit-fueled uncertainties in the world economy and financial market further threatened the prospects of the Korean economy.

To battle such headwinds, the government said Tuesday it will take an expansionary fiscal stance to draw up 10 trillion won ($8.57 billion) in extra budget. (Yonhap)