South Korean stocks closed marginally lower Tuesday as investor sentiment was dented by renewed fears over Greece's inability to pay back debts, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index shed 0.61 points, or 0.03 percent, to finish at 2,096.77. Trading volume was moderate at 387.3 million shares worth 4.93 trillion won ($4.5 billion) with decliners outpacing gainers 443 to 356.

Analysts said although European finance ministers discussed the Greek situation at their latest meeting, they failed to find a solution for Athens, which needs an additional rescue package to keep afloat.

"Greece paid back 750 million euros ($838.5 million) to the IMF. But it cannot warrant another 4.5 billion euro repayment by the July deadline if doesn't get the 7.2 billion euro bailout from the ECB," Jeon Ji-won, an analyst at Kiwoom Securities Co.

Offshore and retail investors were net buyers of local equities, snapping up a net 3.6 billion won and 74.6 billion won each. Institutions, however, dumped a net 89.5 billion won.

Brokerages and airlines drove down the main index, with KDB Daewoo Securities Co. tumbling 4.15 percent to 15,000 won and Asiana Airlines slumping 3.5 percent to 6,890 won.

Oil refiners took a dive on falling crude prices. S-Oil, South Korea's smallest oil refiner, sank 2.12 percent to 69,200 won, with top player SK Innovation falling 0.87 percent to 114,000 won.

A drop in U.S. light crude oil prices overnight sent major energy stocks lower on Wall Street, weighed down by signs that shale oil production is increasing.

In contrast, shares of financial firms ended bullish. State-run Industrial Bank of Korea gained 2.04 percent to 15,000 won and top life insurer Samsung Life Insurance hiked 3.3 percent to 110,000 won. 

The local currency ended at a one-month low of 1,095.80 won against the greenback, down 4.5 won from Monday's close, due largely to escalating concerns over the Greek debt crisis, dealers said.

Bond prices, which move inversely to yields, closed sharply lower. The yield on three-year Treasurys gained 6.6 basis points to 1.942 percent and the return on the benchmark five-year government bonds rose 10.4 basis points to 2.215 percent. (Yonhap)