Foreigners Bail Out; Kospi Below 600

Heavy selling by foreign investors sent Seoul's main market dropping to below the 600-point mark. The Korea Composite Stock Price Index closed at 595.72 down 13.19 points, or 2.2 percent.

"Foreign investors unloaded their holdings, after Wall Street failed to rebound," said an analyst at Kyobo Securities. Already battered by a series of earnings warnings from major technology firms, the U.S. Nasdaq market ended mixed overnight, despite tech bellwether Oracle's report of an optimistic earnings forecast .

Trade volume was 445 million shares, valued at 2.55 trillion won ($1.96 billion). Losing issues led gainers 602 to 215. A total of 28 shares rose the daily limit of 15 percent and four fell by that limit.

Core blue chips were weak. Samsung Electronics shed 2.7 percent, finishing at 200,000 won. SK Telecom declined 2.9 percent to 202,000 won. Korea Telecom lost 3.3 percent, ending at 53,300 won.

Pohang Iron & Steel plunged 4.9 percent to 98,000 won, on the news that the steelmaker would meet surety obligations for its debt-ridden Venezuelan subsidiary. Korea Electric Power slipped 0.9 percent to 22,350 won.

The Kosdaq market fell for a third day. The composite index ended at 78.83, down 2.1 points, or 2.6 percent. Trade volume was thin at 334 million shares. The daily turnover was 1.64 trillion won. Leading telecommunication and dot-com shares were weak. Declining issues overwhelmed advancers 475 to 116; 17 shares rose 12 percent, the daily limit, and eight hit the downward limit.

by Moon So-young