South Korean shares declined more than 1 percent Monday as Samsung Electronics fell to an over two-year low amid rising uncertainties over the new Trump administration's trade policies. The local currency sharply fell against the US dollar.

The benchmark Korea Composite Stock Price Index lost 29.49 points, or 1.15 percent, to close at 2,531.66, following a 0.14 percent drop on Friday.

Trade volume was heavy at 565.2 million shares worth 11.1 trillion won ($7.96 billion), with losers far outpacing winners 726 to 186.

Foreigners sold a net 537.8 billion won worth of local stocks and institutions offloaded a net 237 billion won, offsetting a net purchase of 736.1 billion won by individuals.

In particular, offshore investors dumped top cap Samsung Electronics for nine straight sessions from Oct. 30.

The selling streak followed their previous selling spree for 33 sessions in a row from Sept. 3 to Oct. 25, dumping a net 12.9 trillion won, amid concerns that the world's largest memory chip maker has been losing steam amid booming demand for AI chips.

Additionally, a shift in trade and economic policies under the incoming Trump administration also weighed heavily on Samsung Electronics and other semiconductor shares.

Samsung Electronics tumbled 3.51 percent to 55,000 won, marking the lowest closing price since Sept. 30, 2022, when it finished at 53,100 won.

Its chipmaking rival SK hynix also sank 3.94 percent to 192,600 won, and Hanmi Semiconductor, a leading chip equipment supplier, slumped 6.48 percent to 88,100 won.

Retailers went south, with Lotte Shopping dropping 2.37 percent to 61,700 won and Shinsegae dipping 3.25 percent to 136,900 won.

Food giant Nongshim slid 3.16 percent to 353,000 won, and Hotel Shilla, a hotel chain under Samsung Group, went down 2.88 percent to 38,800 won.

However, leading battery maker LG Energy Solution jumped 4.39 percent to 416,000 won on news reports that it will supply cylindrical batteries to Space X.

Top carmaker Hyundai Motor rose 3.69 percent to 211,000 won and its sister Kia also gained 1.72 percent to 94,600 won.

The local currency was trading at 1,394.7 won against the greenback at 3:30 p.m., down 8.3 won from the previous session. (Yonhap)