SEOUL: Seoul shares fell on Thursday, weighed down by the persistent uncertainty surrounding the euro zone's debt problems and sharp drops in LG-related stocks such as LG Electronics , which was hit by rumours of a rights issue.
The Korea Composite Stock Price Index (KOSPI) ended down 1.48 percent at 1,869.96 points.
"Overriding uncertainty ahead of key decisions during the G20 meetings and in Greece kept investors cautious," said Shin Joong-ho, a market analyst at Hanwha Securities.
A draft G20 communique commits to move "more rapidly" toward greater exchange rate flexibility, toughening language that generally is aimed at China's rigid currency regime.
"Given the market's current level following strong gains last month, investors are more apt to take profits," Shin added.
Foreign investors sold a net 43 billion won ($38.3 million) worth of stocks, offloading shares for a second straight session.
LG Electronics ended down 13.7 percent, posting its biggest daily percentage loss in more than 3 years, hit by market talk the company was planning a $890 million share sale to support its ailing smartphone business and unprofitable flat-screen unit.
Shares in LG Display , in which LG Electronics is the top shareholder with an around 38 percent stake, finished down 6.3 percent, and the parent LG Corp lost 9.9 percent.
LG Electronics and LG Display were respectively the first and second most-frequently traded shares on the main KOSPI.
Banks and shipyards lost ground on economic jitters.
KB Financial Group fell 3.8 percent and Shinhan Financial Group shed 2.6 percent.
Daewoo Shipbuilding & Marine Engineering declined 5.7 percent and Samsung Heavy Industries dropped 4.3 percent.
Refiners and airlines retreated as the won weakened, pointing to higher costs of importing crude oil and jet fuel.
Shares in SK Innovation , the country's top crude oil refiner, fell 3 percent and Asiana Airlines shed 3.2 percent.
Defensive sectors outperformed as investors sought relative safety.
Lotte Shopping , a discount chain and department store operator, rose 2.4 percent and snack maker Crown Confectionary climbed 1.3 percent.
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