South Korean stocks slumped more than 1 percent Wednesday amid concerns about the rising inflation pressure. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) decreased 32.29 points, or 1.09 percent, to close at 2,930.17 points.

Trading volume was moderate at about 559 million shares worth some 9.5 trillion won ($8 billion), with losers outnumbering gainers 807 to 86.

Institutions sold net 236 billion won, while retail investors bought 235 billion won. Foreigners offloaded a net 21 billion won.

Stocks came off to a lackluster start as investors are worried the rising inflation pressure may advance the Federal Reserve's tapering timeline.

Overnight, the tech-heavy Nasdaq composite lost 0.6 percent, and the Dow Jones Industrial Average retreated 0.31 percent.

"The strong price indicators in the United States and China seem to have triggered a stock fall here," said Eugene Investment & Securities analyst Huh Jae-hwan.

Most large caps closed lower in Seoul.

Market bellwether Samsung Electronics decreased 0.43 percent to 70,200 won, No. 2 chipmaker SK hynix shed 0.46 percent to 108,500 won, and internet portal operator Naver declined 0.72 percent to 414,500 won.

Electric car battery maker LG Chem moved down 3.9 percent to 739,000 won, and pharmaceutical giant Samsung Biologics retreated 0.73 percent to 820,000 won. Top carmaker Hyundai Motor shed 2.11 percent to 208,500 won.

The local currency closed at 1,180.9 won against the US dollar, down 3.7 won from the previous session's close. (Yonhap)