Seoul: Seoul stocks closed slightly lower Tuesday as investors remained cautious over uncertainties surrounding a looming government shutdown in the United States. The Korean won fell against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) slid 6.61 points, or 0.19 percent, to close at 3,424.6. Trade volume was moderate at 511.5 million shares worth 10.7 trillion won (US$7.6 billion). Losers outnumbered gainers 584 to 279.

Institutional and retail investors were net sellers, offloading 55.7 billion won and 15.6 billion won worth of stocks, respectively. Foreigners, on the other hand, snapped up a net 13.7 billion won. Investors took to the sidelines on growing concerns over a possible U.S. government shutdown, which could start Tuesday midnight (local time) if Congress fails to reach an agreement, Lee Kyoung-min, an analyst from Daishin Securities, said.

In Seoul, large-cap shares ended mixed, with shipbuilding and defense shares being among the winners. Market top-cap Samsung Electronics fell 0.36 percent to 83,900 won, while its rival SK hynix inched down 0.43 percent to 347,500 won. Major portal operator Naver also lost ground, retreating 2.19 percent to 268,000 won on profit taking.

In contrast, defense giant Hanwha Aerospace jumped 4.53 percent to 1,107,000 won, and shipbuilder HD Hyundai Heavy Industries advanced 4.78 percent to 515,000 won. The local currency closed at 1,402.9 won against the greenback, down 4.2 won from the previous market's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 1.9 basis points to 2.582 percent, and the return on the benchmark five-year government bonds climbed 1.3 basis points to 2.734 percent.