SEOUL: Seoul shares closed slightly lower on Tuesday, pressured by falls in banks such as KB Financial Group Inc , with persistent concern over Europe's debt crisis keeping investors cautious.
"Caution deepened ahead of key decisions in Europe," said Mirae Asset Securities market analyst Lee Jin-woo.
The Korea Composite Stock Price Index (KOSPI) finished down 0.83 percent at 1,903.14.
Institutions were sellers of a net 62.1 billion won ($55.6 million) worth of stocks, offloading shares for a second straight session. Retail investors sold a net 110.5 billion won.
Hynix Semiconductor Inc tumbled 4.6 percent on concern SK Telecom Co Ltd's bid for the world's No.2 memory chip maker may be jeopardised amid ongoing investigation into SK Group.
SK Telecom is the sole bidder for the Hynix stake being offered by its shareholders.
"The Hynix stake sale could slow because of this investigation," said Meritz Securities analyst Lee Sun-tae. "Concern about a possible delay weighed on sentiment."
Banks and chemicals issues added to downward pressure.
KB Financial lost 1.6 percent after two sessions of gains, and Shinhan Financial Group Co Ltd shed 3.7 percent.
Chemicals counters were under pressure after recently outperforming the broader market.
LG Chem Ltd lost 0.82 percent after posting a 14 percent gain in the past month as of Monday's close, compared with the KOSPI's 9 percent rise during same period. Honam Petrochemical Corp fell 1.8 percent.
LG Electronics Inc rebounded firmly, gaining 2.9 percent after sharp falls last week on its rights offer plans.
Shipping companies retreated after the Baltic Dry Index , which tracks the cost of shipping key commodities, fell 1 percent.
STX Pan Ocean Co Ltd fell 2.9 percent and Hanjin Shipping Co Ltd lost 4 percent.
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