South Korean stocks closed 0.32 percent lower Friday due to Samsung Electronics' lower-than-expected earnings estimate for the second quarter, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) moved down 5.83 points to close at 1,833.31. Trading volume was low at 280 million shares worth 3.72 trillion won ($3.27 billion) with gainers outpacing losers 434 to 351.

Analysts said the decline came as Samsung Electronics, the world's leading smartphone maker, estimated Friday it had posted a record quarterly operating profit of 9.5 trillion won in the second quarter of this year.

The preliminary estimate represents a 47 percent increase from a revised operating profit of 6.46 trillion won a year earlier, the tech giant said in a regulatory filing.

It also marks an 8.2 percent rise from three months earlier when the tech behemoth posted an operating profit of 8.78 trillion won. The second-quarter earnings guidance was lower than the market estimate of 10.2 trillion won.

"Seoul shares traded lower despite the European Central Bank said it plans to maintain economic stimulus measures, due to the market's heavy dependency on Samsung Electronics," said Kim Hak-gyun, an analyst at KDB Daewoo Securities.

"The rising concerns over the slowing Chinese economy and a possible cut in the United States' quantitative easing also weighed down on the market by sparking a foreign selling," added Kim Ji-hyun, a researcher at Tongyang Securities Co.

Foreigners dumped more shares than they bought at 146.9 billion won, and institutions sold a net 94.9 billion won. In contrast, individuals scooped up a net 238 billion won.

Tech shares led the overall decline, with top player Samsung Electronics losing 3.8 percent to 1,267,000 won and leading chipmaker SK hynix falling 1.22 percent to 28,400 won.

Logistics firms also closed bearish, with Hyundai Merchant Marine falling 2.64 percent to 14,750 won and top air carrier Korean Air losing 0.67 percent to 29,600 won. Asiana Airlines shed 0.58 percent to 5,120 won.

In contrast, mobile carriers gathered ground, with SK Telecom climbing 3.34 percent to 216,500 won and KT rising 0.84 percent to 36,200 won. The smallest player, LG Uplus, added 4.74 percent to 13,250 won.

Shipbuilders closed higher on an improved outlook on the global economy, with Hyundai Heavy Industries advancing 2.04 percent to 178,500 won and Samsung Heavy Industries moving up 2.14 percent to 35,800 won.

Carmakers closed mixed, with No. 1 industry player Hyundai Motor losing 0.23 percent to 213,500 won and top auto parts maker Hyundai Mobis falling 0.95 percent to 259,500 won. Kia Motors added 2.04 percent to 59,900 won.

The local currency ended at 1,142.30 won against the greenback, down 2.90 won from Thursday's close, due mainly to importers snapping up the greenback for settlements, dealers said.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries gained 0.02 percentage point to 2.95 percent, and the return on the benchmark five-year government bonds also advanced 0.03 percentage point to 3.22 percent. (Yonhap News)