Seoul shares closed slightly lower on Friday, as investors turned cautious ahead of a closely-watched US jobs report and amid uncertainties ahead of the Bank of Korea's policy-setting meeting next week. Buying sentiment was also weakened with the approach of triple witching day on December 9, when index options, index futures and individual stock options are set to expire.
POSCO Co Ltd, the world's fifth-biggest steel maker, shed 1.72 percent to close at 199,500 won as investors booked profits from the stock's recent surge to a record high of 205,000 won.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.18 percent to close at 882.55, down from high of 893.42 points. The market rose 2.8 percent for the week.
"There's very strong psychological resistance at 890 points and investors are reluctant to push past it as recent experience has shown it leads to a steep correction," said Kim Hyun-tae, a fund manager at Wooer Investment Trust Management.
"Investors are shifting their attention to the US employment data and the Bank of Korea meeting next week." Economists surveyed by Reuters forecast the US economy added 180,000 jobs in November from October's unexpectedly big gain of 337,000 in October.
The US unemployment rate was seen slipping to 5.4 percent from 5.5 percent in October.
On the home front, a slim majority of economists expected the central bank to keep interest rates steady at a policy meeting on December 9, a Reuters poll showed.
Shares in LG.Philips LCD Co Ltd, the world's second-biggest maker of liquid crystal displays, fell 1.33 percent to 37,150 won. The stock rose 16.3 percent in November ahead of its listing on the blue chip Kosei 200 on December 10.
Samsung Electronics Co Ltd, the world's biggest maker of memory chips also shed 0.58 percent to close at 426,000 won on gloomy calls by several foreign brokerages. But other techs posted strong gains, boosted by a positive outlook from US tech bellwether Intel Corp, the world's largest chipmaker.
Highness Semiconductor Inc rose 2.9 percent to end at 10,650 won, while LG Electronics Inc surged gained 3.94 percent to 66,000 won, amid growing optimism about its handset profit margin potential.
A dip in the South Korean won also brought some relief to exporters, boosting shares in top local car maker Hyundai Motor Co 1.17 percent to 51,800 won. Weaker crude oil prices also lent some support, as Nymex crude for January delivery fell $2.24 to $43.25 a barrel. Oil traded at $43.18 a barrel in Asia.
Trade volume reached 334.5 million shares worth 2.3 trillion won compared to 330.8 million shares worth 2.4 trillion won on Thursday. Losers edged out gainers by 410 to 319 with 77 titles ending flat.
Foreign investors sold a net of 135.7 billion won ($129.9 million) in shares on the main bourse. The December KOSPI 200 futures index shed 0.85 point to 113.70 and the underlying KOSPI 200 spot index lost 0.10 point to 113.96.
The over-the-counter Kosdaq lost 0.16 percent to finish at 378.72.