The Korea Composite Stock Price Index (KOSPI) fell 0.6 percent to close at 1,983.07 points, losing additional ground from a nine-week high reached last Thursday. Hyundai Motor fell 2 percent while Kia Motors slid 3.6 percent. Japanese voters handed the Liberal Democratic Party a landslide victory, pushing the yen to a 20-month low which would help lower the costs of Japanese exports. Market heavyweight Samsung Electronics Co Ltd also fell 0.8 percent, spurred by profit taking.
"Local institutions took profits on concerns that US fiscal talks will be difficult to conclude by the end of the year if negotiations aren't wrapped up by this week," said Lee Young-gon, an analyst at Hana Daetoo Securities. "As Wednesday's presidential election adds to the uncertainty, investors are expected to avoid large bets and take profits this week."
But food manufacturers gained, with CJ Cheiljedang Corp rising 3.4 percent. A spokeswoman for the country's largest food processor said it intends to raise food prices after the presidential election. Other food makers are expected to follow suit. Declining shares outnumbered winners 501 to 310. The KOSPI 200 benchmark of core stocks closed down 0.7 percent, while the junior KOSDAQ slid 1.3 percent lower.