South Korean stocks surged by 1.5 percent Friday as investors scooped up oversold stocks after the recent slide. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 43.88 points, or 1.5 percent, to close at 2,968.8 points.

Trading volume was moderate at about 655 million shares worth some 12.3 trillion won ($10.4 billion), with gainers outnumbering losers 766 to 118.

Foreigners bought a net 430 billion won, while retail investors sold 1 trillion won. Institutions purchased a net 594 billion won.

After a strong start, stocks traded bullish, led by gains in tech, auto and bio shares.

"The recent slump on the local stock market seems to have increased bargain hunting by foreigners and institutions," said Kiwoom Securities analyst Kim Se-hun.

Market bellwether Samsung Electronics increased 1 percent to 70,600 won, internet portal operator added 0.49 percent to 409,000 won, and pharmaceutical giant Samsung Biologics gained 1.71 percent to 833,000 won.

Hyundai Motor, the country's largest carmaker, moved up 1.46 percent to 208,000 won, with its smaller affiliate jumping 3.46 percent to 86,800 won. Electric car battery maker LG Chem climbed 2.25 percent to 774,000 won.

Among losers, No. 2 chipmaker SK hynix lost 0.27 percent to 751,000 won, and gaming heavyweight NCSoft plunged 9.03 percent after launching the global version of its latest game Lineage W.

The local currency closed at 1,179.6 won against the US dollar, up 1.2 won from the previous session's close. (Yonhap)