Seoul stocks fell 3.1 percent to a two-week closing low on Thursday, posting their biggest daily percentage fall in nearly three weeks, as fears over global credit markets hit banks such as Shinhan Financial and exporters.
Eight out of every 10 stocks slid on the day, with the falls marked by heavy selling from foreigners, who unloaded a net 459.8 billion won ($506.9 million) in the main board. The Korea Composite Stock Price Index lost 3.11 percent to 1,979.56 points, logging its biggest daily percentage loss since October 22.
Banks fell across the board, tracking US peers lower as a probe of the home loan industry by New York's attorney general highlighted worries over more fallout from the housing downturn. Trade volume stood at 326 million shares valued at 8.4 trillion won, compared to 339 million shares worth 8.7 trillion won on Wednesday. Decliners far outnumbered gainers by 680 to 158, with 39 titles ending flat.