South Korea's economy grew 0.3 percent in the second quarter, down from 0.8 percent in the first three months of this year. The slowdown of economic growth was due to weak domestic consumption and falling exports. The outbreak of Middle East Respiratory Syndrome, responsible for the deaths of thirty-six people up till now, created panic among the public.

Local businesses including shopping malls, restaurants and cinemas reported a sharp drop in sales as people shunned public venues with large crowds. Though no death has been reported since July 4th, the economic impact of the deadly disease will likely last through August according the country's central bank.

The tourist sector has been especially badly hit as the number of foreign visitors slumped more than 40 percent in June. Meanwhile, the country's exports, accounting for half of the economy, are not doing very well. The value of exported goods has fallen every month since the beginning of this year.

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