Seoul shares ended lower Friday amid the prospect of further rate hikes by the Federal Reserve to tame inflation. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index fell 11.79 points, or 0.48 percent, to 2,469.73. Trading volume was moderate at 653.41 million shares worth 8.3 trillion won ($6.6 billion), with decliners outpacing gainers 607 to 283.

Overnight, the Dow Jones Industrial Average fell 0.7 percent, and the tech-heavy Nasdaq Composite lost 1 percent.

Institutions sold a net 62.21 billion won worth of stocks, offsetting foreigners and individuals' stock purchases valued at 606 billion won.

Fed officials' comments on the need for high policy rates for a while to battle inflation weighed on investor sentiment, analysts said.

"Institutions offloaded some local stocks on profit taking, and market participants appear to think the Kospi index may not exceed the 2,500 level due to the Fed's determination to raise rates further," Park Hee-cheol, an analyst at Mirae Asset Securities Co., said.

Large-cap stocks were mixed across the board.

Market bellwether Samsung Electronics Co. fell 0.3 percent to 62,800 won, No. 2 chipmaker SK hynix Inc. declined 1 percent to 93,500 won, national flag carrier Korean Air Co. dropped 1.1 percent to 23,400 won, and leading car battery maker LG Energy Solution shed 1.5 percent to 542,000 won.

Hybe, the Korean entertainment agency behind supergroup BTS, fell 1.5 percent to 195,300 won on news it will acquire a 14.8 percent stake in its rival K-pop agency SM Entertainment to become its largest shareholder.

Among gainers, top carmaker Hyundai Motor Co. rose 0.5 percent to 173,400 won, the country's sole aircraft manufacturer, Korea Aerospace Industries Co., climbed 1.8 percent to 49,350 won, and leading cosmetics firm AmorePacific Corp. was up 0.3 percent to 153,000 won.

KOSDAQ-listed SM Entertainment jumped 16 percent to 114,700 won.

The local currency ended at 1,265.2 won against the US dollar, down 4.8 won from the previous session's close. (Yonhap)