Seoul: Seoul shares ended lower as investors remained cautious over U.S. President Donald Trump's latest tariff threat. The Korean won also fell against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) decreased by 4.22 points, or 0.13 percent, closing at 3,188.07. Despite this drop, the main index recorded a 0.39 percent increase for the week.

Trade volume was moderate, with 389.98 million shares valued at 11.84 trillion won (US$8.5 billion). The number of declining stocks surpassed gainers, with 589 decliners compared to 303 gainers. The KOSPI had initially risen, tracking overnight gains on Wall Street where the Dow Jones Industrial Average rose 0.52 percent and the Nasdaq composite climbed 0.75 percent.

Individual investors sold a net 340.72 billion won worth of stocks, counteracting the stock purchases by institutions and foreigners, which amounted to 61.85 billion won and 187.72 billion won, respectively. Trump has recently informed key U.S. trading partners of new tariff rates set to take effect on Aug. 1 unless they offer better terms in ongoing negotiations.

Investors are also anticipating second-quarter earnings results from major companies in the coming weeks, seeking clues on the market's direction while monitoring further developments in U.S. trade policy, as mentioned by analysts.

In Seoul, large-cap stocks showed mixed results. HD Hyundai experienced a decline of 2.18 percent to 134,800 won, and Korea Electric Power Corp. fell 0.68 percent to 36,250 won. Korean Air dropped 0.95 percent to 25,950 won, and HMM decreased by 0.99 percent to 25,000 won.

However, some stocks saw gains. Hyundai Motor increased by 0.24 percent to 210,500 won, while Samsung Electronics rose 0.6 percent to 67,100 won. POSCO Holdings gained 1.14 percent to 311,000 won, and LG Energy Solution increased by 1.74 percent to 322,500 won.

The local currency was quoted at 1,393.00 won against the greenback at 3:30 p.m., a decrease of 0.4 won from the previous session. Bond prices, which move inversely to yields, closed higher, with the yield on three-year Treasurys falling 0.5 basis point to 2.474 percent and the return on five-year government bonds declining 1.8 basis points to 2.645 percent.