Korean stocks closed 1.24 percent lower Monday on slower-than-expected growth in the U.S. and uncertainty about European debt woes, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI dropped 24.28 points to finish at 1,940.55, marking the first decline in six sessions. Trading volume was moderate at 406 million shares worth 6.3 trillion won ($5.6 billion), with losers outnumbering gainers 531 to 299.

“The U.S. economy grew 2.8 percent in the last quarter of 2011.

The growth rate is quite good but fell short of expectations.

Investors focused on a possible slowdown in the first quarter of this year,” said market analyst Lim Dong-rak from Hanyang Securities Co.

“The credit downgrades of five eurozone countries by global credit appraiser Fitch Ratings also weighed on the KOSPI.”

He said investors took a breather following a steep rally over the last two weeks. The KOSPI gained more than 100 points over that period.

Foreigners offloaded 76.5 billion won worth of local shares to end a 12-session buying streak. They have snapped up nearly 6 trillion won over the past two weeks to lead the rally.

Large-cap exporters led the decline. Market bellwether Samsung Electronics slid 0.89 percent to finish at 1,115,000 won. The world’s biggest memory chip maker closed at a record 1,125,000 won on Friday after reporting an all-time high operating profit for the final quarter of last year.

Steelmakers ended lower, with market leader POSCO falling 1.65 percent to 416,500 won and Hyundai Steel dropped 2.71 percent to 107,500 won.

Top automaker Hyundai Motor retreated 2.26 percent to 216,000 won and its smaller affiliate Kia Motors dipped 0.89 percent to 66,500 won.

Financials were mixed. Hana Financial Group shed 1.13 percent to 39,500 won but Shinhan Financial Group added 0.78 percent to 45,350 won.

The local currency ended at 1,127.3 won to the greenback, down 4.1 won from Friday’s close, as investors fled to the safety of the dollar, analysts said. 

(Yonhap News)