South Korean stocks fell 0.43 percent, snapping a three-day winning streak on Thursday as investors locked in recent gains, with losses in tech heavyweights dragging down the index. The local currency rose against the greenback.

The benchmark Korea Composite Stock Price Index retreated 8.57 points to end at 1,990.65. Trade volume was thin at 497.59 million shares worth 3.54 trillion won ($ 3.04 billion), with losers beating winners 418 to 381.

Stocks got a head start as a rebound in crude oil prices from a 11-year low and gains in Wall Street boosted optimism, but investors offloaded stocks in late afternoon to lock in profits.

U.S. crude futures jumped 3.8 percent to US$37.50 a barrel on the New York Mercantile Exchange, supporting the battered energy sector on Wall Street on Wednesday.

"The upbeat U.S. consumer data and a recovery in prices of crude oil and other commodities helped boosted the equity market in early trades, but selling by offshore investors and individuals limited further gains," Kim Jung-hyun, an analyst at IBK Securities, said. "There was no Santa Claus Rally this year."

Institutions bought a net 330.29 billion won, while foreigners and individuals offloaded a net 7.19 billion won and 359.7 billion won, respectively.

Tech shares lost ground to weigh down the index.

Market kingpin Samsung Electronics declined 0.77 percent to 1,285,000 won and SK hynix, the world's second-largest chipmaker, sank 3.06 percent to 31,700 won.

Investors responded to mixed corporate news to snap up shares with upward momentum.

Mirae Asset Securities gained 1.34 percent to 9,080 won after it was selected as the preferred bidder for a 43-percent stake in Daewoo Securities, a deal that would create the country's biggest brokerage with a combined capital of around 8 trillion won.

In contrast, Daewoo Securities, the country's second-largest brokerage house, slipped 0.49 percent to 10,200 won.

Doosan Infracore, the maker of construction equipment under the Doosan Group, edged up 0.39 percent to 5,150 won after a private equity fund operated by Standard Chartered was named as the preferred bidder with a 1.3 trillion won ($1.1 billion) offer, slightly higher than market estimate.

Doosan Heavy Industries & Construction, Daewoo's construction unit, also rose 3.86 percent to 22,850 won on hopes that the deal could improve the cash-strapped builder's finances.

The local currency ended at 1,167.8 won against the greenback, up 5.3 won from Wednesday's close, rising for four consecutive days. (Yonhap)