Seoul shares rose on Tuesday to their highest close in three months as investors favoured domestically-focused stocks such as Kookmin Bank or defensive plays, while exporters lagged due to worries over the global economy.
Oil refiners such as SK Corp also gained after oil prices surged more than $1 per barrel, generating optimism that higher product prices would help improve margins.
Traders also said they saw a large amount of programme trading - or when buying or selling is automatically triggered by software responding to pre-determined criteria - with net programme buying reaching 330 billion won ($344.9 million), according to Korea Exchange data.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.01 percent to end at 1,334.96 points, its highest close since May 22.
"We are seeing investors transition from exporters into domestically-focused sectors that have attractive valuations," said Kim Seong-ki, chief investment officer at SH Asset Management.
Banks recovered from recent losses, with Kookmin Bank gaining 1.28 percent to 79,400 won after having fallen 2.6 percent over the past three sessions.
Hyundai Department Store Co Ltd rose 2.75 percent to 74,800 won.
Defensive stocks also gained, with state-run power provider Korea Electric Power Corp gaining 1.1 percent to 36,900 won, and steel maker POSCO Co Ltd ending up 1.29 percent to 236,500 won.
SK Corp, the country's biggest oil refiner, rose 1.92 percent to 63,700 won. Hynix Semiconductor Inc ended unchanged at 34,500 won. Trade volume reached 180.8 million shares worth 2.4 trillion won, data at 0645 GMT showed, compared to 189.3 million shares worth 2.3 trillion won on Monday. Gainers trumped decliners by 491 to 249 with 79 titles ending flat.
Foreign investors sold a net 324.9 billion won in shares on the main bourse, while retail investors sold a net 37.1 billion won. Institutional investors bought a net 314.9 billion won. The September KOSPI 200 futures index rose 1.95 points to 174.60, while the underlying KOSPI 200 spot index gained 1.85 points to 173.81. South Korea's junior and tech heavy Kosdaq market rose 0.58 percent to finish at 554.09.