South Korean stocks closed slightly higher Friday as investors' sentiment was boosted by the government's announcement of a stimulus plan, but the gain was limited by Greek debt woes, analysts said. The local currency lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 5.20 points, or 0.25 percent, to 2,090.26. Trading volume was moderate at 485 million shares worth 6.24 trillion won ($5.59 billion), with losers outpacing gainers 516 to 290.

Seoul shares managed to edge up amid hopes the government's pump-priming plan could help prop up the slumping economy hit by the outbreak of Middle East Respiratory Syndrome.

The government said Thursday it is seeking to inject around 15 trillion won into the economy by drawing up an extra budget and utilizing various state-run funds, although the detailed amount is yet to be announced.

Analysts, however, said the growth was limited as other investors took a wait-and-see approach on the prolonged Greek debt talks and the second-quarter earnings report of listed firms.

"While the extra budget is meaningful in that the government expressed its willingness to revitalize the economy, it is also too early to say it is enough to beef up the market," said Kim Hyung-ryeol, an analyst at Kyobo Securities Co.

Foreigners bought a net 64.87 billion won, while retail investors offloaded more shares than they bought at 16.87 billion won. Institutions sold a net 37.2 billion won.

Carmakers closed higher, with No. 1 Hyundai Motor adding 2.27 percent to 135,000 won and its smaller sister Kia Motors rising 0.33 percent. Auto parts maker Hyundai Mobis gained 0.48 percent.

Market behemoth Samsung Electronics rose 0.71 percent to 1,278,000 won and top portal operator Naver gained 0.77 percent to 658,000 won.

SK Holdings advanced 1.77 percent to 201,500 won and SK C&C moved up 0.72 percent to 279,500 won as shareholders of two SK Group units approved their proposed merger plan.

Samsung C&T, which seeks to merge with Cheil Industries, lost 1.49 percent to 66,300 won as a U.S.-based hedge fund continued to raise questions against the plan. Cheil Industries remained unchanged at 173,500 won.

Mobile carriers lost ground, with SK Telecom falling 1.57 percent to 250,500 won and KT losing 1.03 percent to 28,700 won. LG Uplus, the smallest player, shed 1.01 percent to 9,810 won.

The local currency ended at 1,116.90 won against the greenback, down 6.90 won from the previous trading session. (Yonhap)