Seoul: Seoul shares experienced a slight decline on Thursday, marking a fifth straight session of losses as political uncertainties continue to loom over the nation. The impeachment trial and investigation against President Yoon Suk Yeol have fueled investor concerns, though the South Korean won showed strength against the U.S. dollar.

According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) decreased by 0.55 points, or 0.02 percent, closing at 2,398.94. The trading volume was low, with 344.7 million shares exchanged, valued at 6.8 trillion won (approximately US$4.63 billion). Despite the overall decline, the number of gainers surpassed losers, with 451 stocks rising compared to 426 falling.

Institutional and foreign investors collectively sold a net 428.8 billion won, while individual investors purchased a net 355.7 billion won. The South Korean financial markets have been under pressure since President Yoon's brief declaration of martial law on December 3, which resulted in the passage of an impeachment motion against him. A warrant for his detention on insurrection charges was granted by a Seoul court, and the state anti-corruption agency is expected to execute it soon.

Kim Ji-won, an analyst at KB Securities, stated, "Last year was particularly challenging for the domestic stock market due to internal and external uncertainties, and with uncertainties persisting, it will be difficult to expect a quick recovery in investor sentiment."

The decline was led by major blue-chip stocks, particularly in the semiconductor and battery sectors. SK hynix fell 1.55 percent to 171,200 won, and LG Energy Solution dropped 0.57 percent to 346,000 won. Steel and chemical stocks also suffered, with POSCO Holdings down 1.38 percent to 250,000 won and LG Chem declining 3 percent to 242,500 won.

In contrast, financial shares saw gains, with KB Financial rising 0.60 percent to 83,400 won and Shinhan Financial increasing 0.21 percent to 47,750 won. Samsung Electronics, a market heavyweight, also posted gains, ending up 0.38 percent at 53,400 won.

Defense-related stocks experienced robust trading after the government's commitment to support the industry in securing significant international contracts. Hanwha Aerospace surged 11.33 percent to 363,500 won, and LIG Nex1 climbed 15.19 percent to 254,000 won.

The South Korean won traded at 1,466.60 against the U.S. dollar by late afternoon, appreciating by 5.90 won from the previous session.