The index rose 4.4 percent last week, with local currency falling to a near six-year low on Friday as investors sought safer assets amid concerns over Europe's economy and oil prices.

Earlier in the day, the finance minister vowed to take swift action against any sharp currency fluctuation amid the won's recent tumble against the greenback.

Analysts said the balance between buyers and sellers following the previous week's bull run points to positive sentiment, though investors remained cautious ahead of the meeting of Group of 20 finance ministers and central bankers slated for Friday in China.

"The index is going through a modest correction following a sharp surge due largely to rebounding oil prices and a strong dollar," Ryu Yong-seok, an analyst at Hyundai Securities, said. "If you look at the price chart last week, a slight fall may be inevitable. Foreigners remained net buyers, easing worries over the overall market sentiment."

Foreign investors purchased a net 33.28 billion won, while institutions and individuals offloaded a net 51.69 billion won and 33.28 billion won, respectively.

Construction and automakers dragged down the broader market, while gains in chemical and bio shares erased some of the losses.

Top automaker Hyundai Motor lost 1.01 percent to 147,500 won, and its sister company Kia Motors retreated 1.84 percent to 48,100 won after the local won remained downbeat following last week's deep loss.

LG Electronics, the No. 2 player, surged 2.8 percent to 62,500 won after its latest flagship smartphone, the G5, and new smart gadgets drew a positive response the Mobile World Congress underway in Barcelona, Spain.

LG Chem, the nation's leading chemicals and battery maker, steadied at 303,500 won after it signed a deal to supply lithium-ion batteries to Fiat Chrysler Automobiles' new minivan later this year.

The local currency closed at 1,234.4 won against the U.S. dollar, unchanged from Friday's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 1.2 basis points to 1.480 percent and the return on the benchmark five-year government bonds moved up 1.7 basis points to 1.596 percent. (Yonhap)