South Korean stocks fell by 1.5 percent Friday to end a three-day winning streak as investors sought profits. The Korean won declined sharply against the US dollar.
The benchmark Korea Composite Stock Price Index lost 60.32 points, or 1.51 percent, to close at 3,926.59. The index had risen for three sessions in a row from Tuesday to Thursday.
Trade volume was light at 237.7 million shares worth 11.7 trillion won ($8 billion), with winners outpacing decliners 592 to 281.
Foreigners dumped a net 2 trillion won worth of shares to lead the sharp daily decline, while individuals scooped up a net 1.6 trillion won and institutions purchased a net 459.4 billion won.
"There is no clear reason to drag down the index," said Lee Jae-won, an analyst from Shinhan Securities. "It seems that investors sold shares to hunt for profits after a rally."
He said the market remained lukewarm even after the ruling and opposition parties agreed on the government's tax revision plans on separate taxation for dividend income in a bid to encourage dividend payouts and boost the stock market.
Market heavyweights finished in negative territory.
Top-cap Samsung Electronics sank 2.9 percent to 100,500 won, and its chipmaking rival SK hynix dropped 2.57 percent to 530,000 won.
Battery makers were among the biggest losers as industry leader LG Energy Solution plunged 6.85 percent to 408,000 won and Samsung SDI slid 1.16 percent to 299,500 won.
Defense giant Hanwha Aerospace lost 1.27 percent to 852,000 won, and leading biotech firm Samsung Biologics skidded 2.37 percent to 1.6 million won.
Naver retreated 2.98 percent to 244,000 won after announcing its merger with Dunamu, the operator of South Korea's largest crypto exchange, Upbit.
However, Kia, the second-largest carmaker, edged up 0.09 percent to 114,100 won, and major banking group KB Financial Group added 0.89 percent to 124,800 won.
The local currency was quoted at 1,470.6 won against the greenback at 3:30 p.m., down 5.7 won from the previous session. (Yonhap)
