S.Korea department store sales rise for 3rd mth

SEOUL, June 16 (Reuters) - Sales at top South Korean department stores in May rose for a third consecutive month, adding to a recent string of data indicating that the economy had bottomed out.

Combined sales at the three top department store operators -- Lotte Shopping Co Ltd (023530.KS), Shinsegae Co Ltd (004170.KS) and Hyundai Department Store Co Ltd (069960.KS) -- increased 5.4 percent in May over a year earlier, data from the Ministry of Knowledge Economy showed on Tuesday.

That compares with a 2.8 percent gain in April and a 4.5 percent rise in March.

"Consumption indicators have improved but it's still premature to affirm (a clear turnaround), considering the still sluggish demand for durable goods and sales promotion efforts," the ministry said in a statement.

Home appliance sales in major department stores dropped 6.8 percent in May from a year ago, their tenth consecutive monthly decline.

The ministry also said sales at the country's major discount stores rose 1.6 percent in May from a year earlier, their second monthly gain.

(Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner)