South Korean stocks plunged more than 1 percent Friday, extending their losing streak to a seventh session, as major chipmakers came under heavy sell-offs by foreign investors amid concerns of a fall in chip prices. The Korean won declined against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) retreated 37.09 points, or 1.16 percent, to close at 3,171.29 points, after hitting an intraday low of 3,146.76 points.

Trading volume was high at about 684 million shares worth some 19.8 trillion won ($16.9 billion), with losers outnumbering gainers 723 to 164.

Foreigners sold a net 2.69 trillion won, the largest daily sell-off since May 12, while retail investors bought 2.81 billion won. Institutions offloaded a net 165 billion won.

Foreigners continued to sell chipmakers on a gloomy forecast for chip demand and concerns about possibilities of an early tapering by the US Federal Reserve.

"Foreign investors have been dumping chip stocks on worries about future chip demand," Kiwoom Securities analyst Han Ji-young said.

"Forecasts of an earlier-than-expected tapering timeline are also weakening foreigners' appetite for risky assets in the emerging markets," she added.

In Seoul, top cap Samsung Electronics tumbled 3.38 percent to 74,400 won, while No. 2 SK hynix added 1 percent to 101,500 won.

Internet portal giant Naver lost 0.91 percent to 436,500 won, with Kakao decreasing 1.02 percent to 146,000 won. Giant chemical maker LG Chem gained 2.05 percent to 896,000 won.

Top pharmaceutical firm Samsung Biologics added 1.13 percent to 983,000 won on surging new coronavirus cases. Leading carmaker Hyundai Motor retreated 0.91 percent to 217,000 won.

The local currency closed at 1,169 won to the US dollar, down 7.8 won from the previous session's close. (Yonhap)