South Korean stocks rose Thursday, snapping their two-day losing streak, on eased concerns over Greece's debt talks with its creditors, analysts said. The local currency dropped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gained 3.39 points, or 0.16 percent, to 2110.89. Trading volume was moderate at 410.7 million shares worth 6.72 trillion won ($6.07 billion), with gainers surpassing losers 455 to 370.

Analysts said positive progress in talks between Greece and its creditors eased investors' woes, though lingering uncertainties kept investors wary.

"The market response to rising bets on the U.S. Federal Reserve raising interest rates this year was considered a little excessive as it had been widely expected. An interest rate hike could be good news in the long term because it indicates an economic recovery," said Cho Byung-hyun, a researcher at Yuanta Securities Korea. "The ongoing negotiations between Greece and its creditors also improved investor sentiment."

Foreigners scooped up a net 246.7 billion won, while institutions and retail investors offloaded a net 202.5 billion won and 43.7 billion won, respectively.

Domestic-focused stocks led the overall market rise. Hotel Shilla, a hotel and duty free shop operator, jumped 7.39 percent to 123,500 won, and furniture maker Hansem scored 5.83 percent to 227,000 won.

Tech shares were mixed. Market bellwether Samsung Electronics declined 0.38 percent to 1,309,000 won, while chip giant SK hynix gained 2.48 percent to 49,650 won. 

Affiliates of Samsung Group were down as investors locked in profits from a two-day sharp rally of two affiliates, after they announced their merger plan Tuesday, a move seen as speeding up preparations for the leadership change at the nation's largest conglomerate.

Cheil Industries, Samsung's de facto holding company, shed 2.36 percent to 186,000 won, and Samsung C&T, a trading and construction arm, retreated 3.2 percent to 63,600 won.

In contrast, Samsung SDS, a key IT affiliate, jumped 9.3 percent to 329,000 won on speculation that it could be the next in a groupwide reshuffle.

The local currency was trading at 1,105.8 won against the U.S. dollar, down 0.3 won from Wednesday's close. (Yonhap)