Seoul stocks hit their highest in five-and-a-half years on Tuesday, lifted by upbeat service sector data and as a weaker won boosted auto makers, but profit-taking emerged to wipe out gains and hand the main index its first loss in six sessions. Flat panel maker LG.Philips LCD Co Ltd fell 1.22 percent to end at 48,650 won, giving up some of the 6.8 percent gains chalked up over the past five sessions. LG.Philips is due to report second-quarter earnings on Monday.
Trading was also cautious ahead of the central bank's interest rate-setting meeting on Thursday, while many investors were reluctant to trade after Wall Street was closed on Monday for a public holiday.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.28 percent to end at 1,018.81, after rising as high as 1,025.25 earlier in the session. It marked the highest intraday level since hitting 1,047.70 on January 5, 2000, Korea Exchange data showed.
"Profit-taking is the main reason why shares came under pressure," said Kim Jun-nyun, a fund manager at Chohung Investment Trust Management.
Daewoo Securities Co, which gained 7 percent over the past four sessions, shed 1.13 percent to 8,770 won.
Mobile operators fell amid worries that earnings would be hit if the government mandated caller ID services should be made free of charge. SK Telecom Co, which currently charges 1,000 won per month for the service, fell 0.56 percent to close at 179,000 won.
South Korea's junior Kosdaq market extended its winning streak to a sixth day, rising 0.20 percent to finish at 513.53, its highest close since February 17.
Trade volume reached around 559 million shares worth 2.7 trillion won compared to 552.7 million shares worth 2.7 trillion won on Monday. Gainers edged out decliners by 405 to 339 with 61 titles ending flat.
Foreign investors bought a net of 47.9 billion won in shares on the main bourse, data at 0642 GMT showed. Retail investors sold a net of 4.6 billion won. Institutional investors sold a net of 38.7 billion won.
The September KOSPI 200 futures index edged down 0.05 point to 130.85 and the underlying KOSPI 200 spot index fell 0.41 point to 130.54.