An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)

South Korean stocks closed marginally lower for the second consecutive day Monday as the upcoming inauguration of new US President Donald Trump weighed on investor sentiment here. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index fell 3.5 points, or 0.14 percent, to close at 2,520.05, following a 0.16 percent drop on Friday.

Trade volume was moderate at 429.8 million shares worth 8.5 trillion won ($5.86 billion), with decliners outnumbering winners 488 to 387.

With Trump's inauguration, his campaign pledges for higher tariffs and other protectionist trade policies are set to take effect.

According to media reports, Trump promised to implement a host of executive actions on immigration and energy policy, and reverse or eliminate orders implemented by the Biden administration.

In Seoul, foreign selling drove the daily decline.

Offshore investors dumped a net 414.6 billion won, remaining in a selling position for two sessions in a row.

On the other hand, institutions and individual investors purchased a net 65.4 billion won and 277.9 billion won, respectively.

Chips and auto shares finished in negative territory, while battery, shipbuilding and retail firms gained ground.

Semiconductor giant Samsung Electronics dropped 0.56 percent to 53,400 won, and its chipmaking rival SK hynix lost 1.17 percent to 212,000 won.

Top carmaker Hyundai Motor retreated 1.42 percent to 208,500 won, and its auto parts affiliate Hyundai Mobis tumbled 3.37 percent to 244,000 won.

Leading battery maker LG Energy Solution vaulted 5.71 percent to 370,500 won, and POSCO Future M jumped 3.94 percent to 155,800 won.

Shipyards were among the winners, with HD Korea Shipbuilding & Offshore Engineering adding 0.21 percent to 244,000 won and Hanwha Ocean advancing 2.17 percent to 51,800 won, as shipbuilding is considered one of the sectors that would benefit from the second Trump administration.

Hyundai Department Store increased 1.37 percent to 48,150 won, and Nongshim, an instant noodle-making giant, gained 0.88 percent to 344,000 won.

The local currency was trading at 1,451.7 won against the greenback at 3:30 p.m., up 6.6 won from the previous session. (Yonhap)