Seoul:South Korean shares fell by more than 2 percent on Monday, halting their four-day winning streak as investors took profits from large-cap tech stocks. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 191.18 points, or 2.7 percent, closing at 6,889.74.

According to Yonhap News Agency, the index initially opened 0.33 percent lower and was subjected to heavy selling by foreign and institutional investors. This followed a four-session winning streak, with markets closed on Thursday and Friday for the Chuseok holiday.

Investors are currently assessing various factors, including rising bond yields and uncertain prospects regarding the Middle East crisis. In contrast, U.S. stocks ended higher on Friday, with the Dow Jones Industrial Average increasing by 0.93 percent, the S&P 500 gaining 0.51 percent, and the Nasdaq Composite Index advancing by 0.48 percent.

Lee Kyung-min, an analyst at Daishin Securities, noted that while there were signs of easing tensions in U.S.-China and U.S.-Iran relations, a sharp rise in U.S. Treasury yields dampened risk appetite, counteracting the positive developments.

The day's trade volume was light, with 216.2 million shares valued at 21.8 trillion won (approximately US$15.9 billion) changing hands. The market saw more winners than losers, at 608 to 249. Foreign investors and institutions sold a net 3.2 trillion won and 1 trillion won, respectively, while individual investors purchased 2.6 trillion won.

Tech shares were negatively impacted, with Samsung Electronics falling 5.43 percent to 270,000 won and SK hynix dropping 5.05 percent to 1.77 million won. SK Square, SK hynis parent company, saw a decline of 7.56 percent to 1.1 million won.

The Korean won was quoted at 1,365.1 won per U.S. dollar as of 3:30 p.m., a decrease of 7.6 won from the previous session's close.