South Korean shares fell more than 1 percent on Tuesday, retreating from their highest level in more than a decade, as investors locked in gains in recent strong advancers such as Kookmin Bank.
State-run power provider Korea Electric Power Corp (KEPCO) fell 2.62 percent to 35,350 won after the energy minister said the government would put on hold a widely anticipated increase in electricity tariffs.
KEPCO said after the market's close its net profit in the second quarter rose 7.6 percent to 456.1 billion won ($449.3 million) from a year earlier, topping analysts' forecasts.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 1.18 percent to end at 1,116.93, snapping a four-session winning streak. South Korean financial markets were closed on Monday for a public holiday.
Local stocks had risen earlier in the day as high as 1,137.46, nearing an all-time intraday high of 1,145.66 set on November 9, 1994, according to data from Korea Exchange.
Department store operator, Shinsegae Co Ltd, dropped 3.53 percent to 368,500 won, after surging 10.6 percent over the prior three sessions. Top mobile operator SK Telecom Co fell 1.57 percent to 187,500 won.
Shares in broadband provider, Hanarotelecom Inc, dropped 5.65 percent to 2,590 won after it reported a net loss in the second quarter. Among gainers, Korea Exchange Bank (KEB) rose 0.48 percent to 10,500 won amid market speculation that Lone Star would soon sell its controlling stake in the lender.
Trade volume reached 405.4 million shares worth 3 trillion won compared to 409.3 million shares worth 3.3 trillion won on Friday. Decliners outnumbered gainers by 518 to 232, with 59 titles ending flat. Foreign investors sold a net 41.2 billion won in shares on the main bourse, while retail investors bought a net of 23.8 billion won. Institutional investors sold a net 65.1 billion won.
The September KOSPI 200 futures index fell 2.20 points to 144.30 and the underlying KOSPI 200 spot index fell 1.74 points to 144.30.
South Korea's junior and tech heavy Kosdaq market fell 1.53 percent to finish at 517.62.