SEOUL: Seoul shares slid near mid-session on Monday, as investors took to the sidelines following a four-week rally that towed the main index to its highest in six months, eyeing the results of a European Summit and Greek debt talks.
"There is stiff resistance at the 1,950-1,960 point range, with profit-takers forming a barrier against the continuing inflow of foreign bids," said Lee Young-gon, an analyst at Hana Daetoo Securities.
"Although sentiment is still positive, investors are adjusting their pace and waiting on Europe to set the outlook," he added.
European Union leaders are set to sign off on a permanent rescue fund for the euro zone at a summit on Monday, but the focal point of talks will remain on negotiations with Greece's private bondholders to help reduce the country's debt burden, an accord that is tied to its much-needed second aid package.
The Korea Composite Stock Price Index (KOSPI) was down 0.85 percent at 1,948.13 points as of 0245 GMT, hovering near its closely watched 200-day moving average of 1,954.31.
Early falls were led by automobile-related shares, with auto-parts manufacturer Hyundai Mobis tumbling 5.45 percent following three straight losing days on what analysts said were growing concerns about deteriorating margins.
Hyundai Motor fell 1.81 percent, poised for a third consecutive fall after it disappointed lofty investor expectations with record, yet slightly below forecast fourth quarter earnings last week.
Technology shares bucked the overall trend to post gains, led by LG Display which jumped 4.2 percent after it managed to sharply narrow its losses in the fourth quarter with analysts forecasting a turnaround as the company begins mass production of OLED panels.
LG Electronics climbed 2.45 percent while Hynix Semiconductor rose 1.35 percent.
Diotek Co Ltd, a mobile solutions firm that provides software for the Samsung Galaxy line of smartphones and tablets, jumped more than 5 percent on reports of brisk sales for Samsung Electronics' Galaxy Note.
Offshore investors bought a net 42.8 billion won ($38.1 million) worth of shares, poised to buy for a 13th consecutive session, while institutional investors sold a net 50.4 billion won worth.
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