South Korean stocks closed slightly higher Monday on a lack of fresh leads to fuel the market, although foreign investors have been increasing bets in local equities with ample liquidity from the eurozone, analysts said. The South Korean won rose sharply against the dollar.

The Korea Composite Stock Price Index rose 4.78 points, or 0.23 percent, to finish at 2,041.37. Trading volume was moderate at 323.5 million shares worth 4.57 trillion won (US$4.13 billion) with gainers outpacing decliners 482 to 315.

Analysts said the marginal gain came as there was no new source to drive up the index since uncertainties have faded after the U.S.Federal Reserve said last week it was in no hurry to lift the interest rate.

More notable is the string of foreign assets flowing into the local market, they said, as they underpin the positive outlook that shares will further gather ground in the future.

"Foreigners, especially Europeans, have started to increase the Korea portion in their portfolios, with the 30 billion euro-a-month ($32.7 billion) bond-buying program, because they expect fresh earnings momentum from local companies heading for a turnaround," said Son Hwie-won, an analyst at Samsung Securities Co.

South Korean firms suffered a slump in the past few quarters as the global downturn weighed on their profit. But analysts project a moderate rebound in corporate results this year, with top-cap Samsung Electronics forecast to take a leap out of the three-year-low earnings in 2014.

Offshore investors have bought a combined net 2.73 trillion won worth of local shares this month to date, extending their buying streak to an eighth consecutive session Tuesday. Individuals also snapped up shares worth a net 38.9 billion won, from a net sell-off of 113.8 billion won in the previous trading.

Shares of airlines and steelmakers lent support to the KOSPI's gain Tuesday. Top air carrier Korean Air Lines soared 3.28 percent to 48,750 won, with POSCO adding 0.78 percent to 258,000 won.

Automakers were bearish, weighed down by the won's strength.

Hyundai Motor fell 2.23 percent to 175,000 won, and smaller affiliate Kia Motors slid 1.29 percent to 46,000 won.

Hotel Shilla, the hotel chain arm of Samsung Group, gained 1.84 percent to 99,800 won following the announcement Monday that it would buy a major stake in U.S. duty free operator DFASS.

The local currency ended at 1,104.60 won against the greenback, up 10 won from Monday's close. (Yonhap)