"With US markets closed volume is thin and investors are reluctant to make moves as some key US results including IBM are due out tonight," said Kim Yong-kyun, a market analyst at Daishin Securities. "With the exception of some of the theme-based investments, such as nuclear power facility related bets, there are no big gainers. Some techs are under profit-taking pressure after their recent rises," Kim added.
Foreign investors were buyers of a net 39.4 billion won ($35.05 million) worth of stocks and retail investors picked up a net 113.2 billion won. Volume was thinner with 378 million shares exchanging hands compared with 415.3 million shares on Monday.
Banks rebounded from their recent losing streak, with KB Financial Group advancing 1.07 percent and Shinhan Financial Group up 0.95 percent. But tech issues that rallied in recent sessions retreated. Samsung Electronics, the world's No 1 memory chip maker, fell 2.37 percent and Hynix Semiconductor, the world's No 2, retreated 1.16 percent.
Shares in POSCO turned higher to end up 1.0 percent after the firm said US investor Warren Buffet expressed an interest in making an additional investment in the world's No 4 steelmaker during a meeting with POSCO CEO Chung Joon-yang. Retailers rose after data showed early on Tuesday sales growth at South Korea's top three department stores in December hit its highest in 16 months, providing fresh evidence of a sustainable recovery in domestic demand.
Shares in Shinsegae Co Ltd advanced 3.26 percent and Hyundai Department Store climbed 5.45 percent. Institutions were sellers of a net 125.3 billion won worth of stocks, and foreign investors picked up a net 39.4 billion won. Retail investors bought a net 113.2 billion won worth of stocks. Decliners outnumbered advancers 446 to 340 with 85 issues ending flat.
Turnover stood at 5.6 trillion won, compared with 6.2 trillion won on Monday. The KOSPI 200 March futures index ended flat at 224.45, and the KOSPI 200 spot index fell 0.25 points to 224.13. The junior Kosdaq market fell 0.72 percent to close at 549.14.