Seoul shares fell on Monday, pressured by weak U.S. job figures and renewed concern about the euro zone after news of a potential debt crisis in Hungary, with banks like Hana Financial leading losses.

The Korea Composite Stock Price Index (KOSPI) finished down 1.57 per cent at 1,637.97 points.

“Worries about the euro zone after the Hungary news and renewed wariness about the economy following weak U.S. data are weighing on the index. Appetite for risk has turned weak again, and the index will move within a limited range this month,” said Lee Kyung-soo, a market analyst at Shinyoug Securities.

“Shares may react more sensitively to negative newsflows. However we see firm support at the mid-1,500 point level,” Lee added.

Foreign investors were sellers of a net 263.4 billion won ($219.2 million) worth of stocks, ending a two-session buying streak.

Losses were led by financials as a substantial loss in the won pointed to heavier borrowing costs.

KB Financial Group, the holding company of South Korea’s largest lender Kookmin Bank, declined 3.28 per cent and Shinhan Financial Grouplost 4.86 per cent.

LG Display, the world’s No.2 flat panel producer, shed 3.2 per cent, while LG Electronics, the world’s No.3 handset maker, lost 3.77 per cent.

“There are concerns that amid the current economic environment, LG Elec’s sluggish smartphone business will worsen,” said Kim Ji-san, an analyst at Kiwoom Securities.

“A weaker euro is also negative for LG Electronics as its earnings from the euro zone will be devalued,” Kim added.

But Kia Motors rose 2.9 per cent to 33,700 won after hitting a fresh record high of 33,900 won.

“Kia shares are continuing a rally, boosted by robust sales of new models including the K5 and Sportage,” said Park Sang-won, an analyst at Eugene Investment & Securities, adding that his six-month target price on Kia was 42,000 won.

Shipbuilders declined hurt by the Baltic Dry Index, which tracks the cost of shipping key commodities.

Shares in Hyundai Heavy Industries fell 4.11 per cent and Samsung Heavy Industries lost 3.73 per cent.

Food manufacturers outperformed amid growing preference for defensive issues.

Shares in Lotte Confectionary rose 0.72 per cent and Orion Corp climbed 1.16 per cent.