South Korean stocks soared nearly 2 percent Monday to snap their three-day decline as the main opposition party agreed to scrap a planned tax on financial investments. The local currency sharply rose against the US dollar.

The benchmark Korea Composite Stock Price Index rose 46.61 points, or 1.83 percent, to close at 2,588.97.

Trade volume was a little slim at 367.8 million shares worth 7.9 trillion won ($5.8 billion), with winners outnumbering losers 619 to 254.

Foreigners and institutions purchased local stocks worth a combined 370.4 billion won, while individuals sold a net 384.1 billion won.

The Kospi rallied after the main opposition party leader agreed to the government's move to scrap a financial investment income tax.

In Seoul, tech behemoth Samsung Electronics gained 0.69 percent to 58,700 won, while its chipmaking rival SK hynix soared 6.48 percent to 194,000 won.

Top automaker Hyundai Motor climbed 1.41 percent to 216,500 won, with its sister Kia up 3.29 percent to 97,400 won.

Battery and bio shares were also bullish.

Leading battery maker LG Energy Solution jumped 3.27 percent to 426,000 won, and its smaller rival Posco Future M surged 5.7 percent to 241,000 won.

Bio giant Samsung Biologics increased 1.9 percent to 1.02 million won and Celltrion advanced 3.48 percent to 187,400 won.

Internet portal operator Naver also jumped 3.01 percent to 175,700 won and Korea Zinc, the world's largest zinc smelter in the middle of a management control battle, shot up 8.07 percent to 1.09 million won.

But financial shares ended in negative territory, with KB Financial down 1.2 percent to 90,700 won and Hana Financial down 1.31 percent to 60,300 won.

The local currency was trading at 1,370.9 won against the US dollar, up 8.5 won from the previous session. (Yonhap)