Seoul shares fell on Tuesday for the first time in six sessions, led by Samsung Electronics and other recent strong performers, as investors worried the market lacked the fundamentals to justify a record-setting rally.
Top local carmaker Hyundai Motor Co, which hit an all-time high on Monday, fell 1.31 percent to 82,900 won while leading local lender Kookmin Bank dropped 1.19 percent to close at 66,600 won.
The benchmark Korea Composite Stock Price Index, which hit a record high on Monday, fell 0.30 percent to 1,253.86, after earlier shedding as much as 1.65 percent.
The main index has risen 8.3 percent in November and 40 percent so far this year, making it the best performer among major regional markets in 2005.
"The historical high is a burdensome level. The fundamentals and market conditions may not be strong enough to push the KOSPI higher," said Lim Chang-gue, a fund manager at Samsung Investment Trust Management.
Samsung Electronics Co Ltd fell 0.8 percent to 621,000 won. By Monday's close, shares in the world's top maker of memory chips had risen 13.4 percent in November.
Shares in POSCO Co Ltd slid 1.39 percent to 213,000 won.
Foreign investors were net sellers of some 78.4 billion won ($75.42 million) worth of local shares on Tuesday, also denting momentum, analysts said.
South Korea's junior Kosdaq market rose for a 12th consecutive session on Tuesday, led by an extended rally in Internet shares, with investors optimistic about a turnaround in earnings on the back of a recovery in consumer demand.
The Kosdaq ended up 0.19 percent at 643.85 its highest close since ending at 644.7 on July 18, 2002.
Trade volume reached some 435 million shares worth 3.5 trillion won compared to 458.1 million shares worth 3.9 trillion won on Monday. Decliners edged out gainers by 432 to 339 with 59 titles ending unchanged.
Institutional investors sold a net 23.8 billion won while retail investors bought a net 91.4 billion won. The December KOSPI 200 futures index edged down 0.40 point to 161.50, while the underlying KOSPI 200 spot index lost 0.53 point to 161.49.