South Korean stocks closed 1.7 percent lower on Monday, as concerns about the impact of a surging South Korean won hit shares in major exporters such as Samsung Electronics and Hyundai Motor. The won's climb to four-year highs against the US dollar came amid growing pessimism about the South Korean economy and offset early gains from better-than-expected US jobs data and a post-electoral rally on Wall Street, dealers said.
The benchmark Korea Composite Price Index (KOSPI) fell 1.69 percent to close at 846.11.
Shares in Samsung Electronics Co Ltd, the world's biggest maker of memory chips, fell 2.76 percent to end at 440,000 won, while top local car maker Hyundai Motor Co fell 2.49 percent to 54,900 won.
Shares in top ship builder Hyundai Heavy Industries Co fell 5.07 percent to end at 32,800 won on weak third-quarter earnings expectations amid rising steel prices and concerns about the surging domestic currency.
Banking shares also fell, with a sub-index for the sector falling 2.64 percent.
Top local lender Kookmin Bank closed 2.54 percent lower at 38,300 won as investors fretted over the risk from problem loans to households and small and medium sized businesses.
Among gainers, shares in top local builder Hyundai Engineering & Construction Co rose 5.26 percent to end at 16,000 won amid hopes the government would introduce more public works projects to stimulate the sluggish economy.
Shares in SK Corp gained 1.21 percent to 58,700 won, one day after its largest foreign shareholder said it would challenge in court a refusal by SK's board to hold a shareholder meeting aimed at ousting its chief executive.
Trade volume reached 268.2 million shares worth 1.8 trillion won compared to 277.3 million shares worth 2.1 trillion won on Friday. Losers edged out gainers by 443 to 274 with 83 titles ending flat.
Foreign investors bought a net of 35 billion won ($31.59 million) in shares on the main bourse, while retail investors bought a net of 113.1 billion won. Institutional investors sold a net of 179.2 billion won.
The December KOSPI 200 futures index shed 2.65 points to 109.15 and the underlying KOSPI 200 spot index lost 2.18 points to 109.34.
The over-the-counter Kosdaq lost 0.69 percent to finish at 360.18.