Analysts said Seoul shares closed weaker as the Dow Jones industrial average sank 1.56 percent, and the tech-savvy Nasdaq Composite tumbled 3.03 percent.

Investors' sentiment in the US was hurt by the failure to reach a joint statement at this year's Asia Pacific Economic Cooperation forum, following trade dispute between the United States and China, analysts said.

On the local market, tech shares were major losers. "The trade dispute between Washington and China continued to weigh down on the market, and the sharp decrease of tech shares in the US market hurt South Korean investors' sentiment as well," Lee Young-gon, an analyst at Hana Financial Investment Co., said.

Foreigners offloaded a net 255 billion won, becoming net seller for the sixth consecutive session, while retail investors bought a net 168 billion won. Institutions bought more shares than they sold at 90 billion won.

Top tech giant Samsung Electronics lost 1.95 percent at 42,800 won, and No. 2 chipmaker SK hynix slipped 3.3 percent at 67,500 won. Samsung SDI plunged 6.07 percent at 209,000 won.

Carmakers finished bearish, with Hyundai Motor losing 3.94 percent at 97,500 won and its auto parts sister Hyundai Mobis moving down 3.4 percent at 184,500 won. Kia Motors decreased 4.71 percent at 28,300 won.

LG Chem moved down 1.74 percent at 339,500 won and LG Household & Health Care fell 1.53 percent at 1,156,00 won.

Mobile carriers, on the other hand, gained ground, with SK Telecom moving up 2.36 percent at 282,500 won and KT advancing 2.53 percent at 30,350 won. LG Uplus climbed 3.24 percent at 15,950 won.

Top steelmaker POSCO shed 0.38 percent at 259,500 won while Korea Zinc gained 0.34 percent at 438,000 won. Hyundai Steel lost 1.13 percent at 43,600 won.

The South Korean currency ended at 1,125.80 won against the US dollar, up 2.80 won from Friday's close. (Yonhap)