South Korean stocks finished almost flat on Thursday after choppy trading throughout the session, as investors are glued to a key policy meeting by the European Central Bank slated later in the day, analysts said. The local currency fell against the dollar.

The benchmark Korea Composite Stock Price Index shed 0.41 point, or 0.02 percent to close at 1,920.82. Trading volume was moderate at 332.77 million shares worth 4.46 trillion won ($4.11 billion), with losers and gainers both standing at 391.

Analysts said Seoul shares closed nearly flat as investors took a breather after three-consecutive sessions of increase this week, which were boosted by the rising hope for the ECB meeting that is anticipated to come up with stimulus measures.

"The results of the ECB meeting would be significant in that its actions lead to other key economic activities," said Kang Hyung-gie, an analyst at I'M Investment & Securities Co. said. "The lower oil price also helped chemicals and shipbuilders gather ground."

Foreign investors bought more shares than they sold at 50.6 billion won, while individuals sold a net 86.9 billion won.

Institutions offloaded a net 78.2 billion won.

Shipbuilders closed higher, with Hyundai Heavy Industries moving up 3.45 percent to 105,000 won and Daewoo Shipbuilding & Marine Engineering rising 6.63 percent to 18,500 won. Samsung Heavy Industries also gained 3.35 percent to 18,500 won.

Chemical firms were also among the major gainers, with Amore Pacific adding 1.71 percent to 2,495,000 won and LG Chem advancing

4.61 percent to 193,000 won. LG Household & Health Care climbed 1 percent to 605,000 won.

Tech shares, in contrast, traded bearish, with Samsung Electronics falling 1.22 percent to 1,378,000 won and top chipmaker SK hynix moving down 2.19 percent to 47,000 won. LG Display shed 3.87 percent to 34,800 won.

Carmakers also finished lower, with Hyundai Motor losing 2.04 percent to 168,000 won after reporting poor business fourth-quarter results.

Its auto parts arm Hyundai Mobis decreased 0.6 percent to 250,500 won, and Kia Motors shed 0.2 percent to 50,200 won.

The local currency closed at 1,084.90 won per dollar, down 1.50 won from Wednesday's close.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys went up 1.8 basis points to 2.063 percent, and the return on the benchmark five-year government bonds gained 2.7 basis points to 2.175 percent. (Yonhap)