Seoul shares closed lower on Monday, led by major exporters like Samsung Electronics Co Ltd, because weaker-than-expected US jobs data raised fears of slower US imports of local products.
Investors were also wary of most large-cap shares ahead of maturing options and futures later this week.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 0.58 percent to close at 900.10 after hitting a fresh 22-month intraday high of 910.67.
"Weak US data dampened market sentiment and more investors moved to lock in profits from the recent rally as the market fell below a key five-day moving average," said Lee Byung-lyul, a fund manager at PCA Asset.
The US Labour Department reported much weaker than expected jobs growth in February, possibly shutting the door on a Federal Reserve interest rate increase in 2004.
"The market is likely to take a weaker tone throughout this week as investors remain wary of the impact of expiring March futures and options on Thursday," Lee added.
Exporters, especially tech-heavy shares, bore the brunt of the weak US jobs data.
Samsung Electronics, Asia's most valuable technology firm, shed 2.66 percent to 549,000 won, and Samsung SDI Co, the country's top maker of displays for televisions and mobile phones, dropped 2.06 percent and 166,500 won.
LG Electronics, the country's top maker of home appliances, lost 1.59 percent to 68,300 won.
Shares of SK Corp dived 4.21 percent to 40,950 won, hit by concerns that proposed corporate governance improvements at the top local oil refiner could be blocked.
Merrill Lynch downgraded its rating on SK Corp to "sell" due to fading prospects of a management shake-up at a shareholders' meeting on Friday.
But helping the market narrow losses, domestic-oriented shares moved up on hopes for a recovery in local consumption.
Kookmin Bank added 2.56 percent to 50,000 won and Hana Bank climbed 1.06 percent to 28,650 won.
Shares of S-Oil Corp, the country's third-biggest oil refiner, jumped 8.5 percent to 44,500 won as investors focused on a recovery in long-stagnant Asian oil refining profit margins. S-Oil shares were also helped by bigger rival SK Corp's continuing corporate governance concerns.
Losers edged out winners by 376 to 360, with 82 counters closing unchanged.
Trade volume stood at 505 million shares versus 516 million on Friday. Turnover amounted to 2.7 trillion won, down from 3.2 trillion on Friday.
Foreign investors bought a net 112.9 billion won in shares.
Institutional investors sold a net 40.7 billion won in shares and retail investors a net 45.5 billion won in shares.
The junior Kosdaq shed 0.19 percent to 439.358.
The March KOSPI 200 futures index was down 1.20 points to 118.10 and the underlying KOSPI 200 spot index fell 0.78 point to 118.10.
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