South Korean shares fell on Friday as worries about the domestic economy pushed down financials such as Kookmin Bank, while wireless operators extended recent falls on concerns about their earnings outlook.
Kumho Industrial, a unit of Kumho Asiana, dropped 8.16 percent to 15,200 won amid worries the transport group would overpay after being picked as the preferred bidder to buy a controlling stake in Daewoo Engineering & Construction Co Ltd.
Daewoo, South Korea's second-largest construction firm, fell 5.26 percent to 12,600 won, with shares further hit by worries about a slowdown in the domestic construction sector. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.82 percent to end at 1,228.62.
The index fell 2.66 percent for the week, marking its fifth losing week in six.
Kookmin Bank, the country's biggest lender, fell 2.43 percent to 72,200 won. Banks also dipped after South Korea's financial watchdog ordered them to reduce mortgage lending amid rising housing prices.
SK Telecom, the country's biggest wireless services provider, fell 2.26 percent to 194,500 won, while smaller rival LG Telecom Co fell 3.81 percent to 10,100 won.
Trade volume reached 184.3 million shares worth 2.3 trillion won compared to 228 million shares worth 3.2 trillion won on Thursday. Decliners outnumbered gainers by 504 to 241 with 71 titles ending flat.
Retail investors bought a net of 83.6 billion won. Institutional investors sold a net of 11.2 billion won.
The September KOSPI 200 futures index 1.95 point to 158.75 and the underlying KOSPI 200 spot index 1.32 point to 158.88.
South Korea's junior and tech heavy Kosdaq market fell 0.86 percent to finish at 559.37.