Korean stocks closed 0.38 percent lower on Monday due to an absence of fresh upward momentum, analysts said. The local currency lost ground against the U.S. dollar.

After opening 0.41 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) soon reversed to lose 7.64 points to close at 2,019.19. Trading volume was moderate at 432 million shares worth 4.53 trillion won ($3.97 billion) with losers outpacing gainers 561 to 296.

"The lack of any upward momentum made it hard for the market to retain earlier gains," said Seo Dong-pil, an analyst at Hana Daetoo Securities.

He added North Korea's plans to launch a long-range rocket in April raised the country's geopolitical risks, hurting investor sentiment.
Institutional and foreign investors were net sellers, while private investors bought more than they sold.

Market heavyweight Samsung Electronics climbed for the third straight trading session to gain 1.11 percent to 1,275,000 won, while top automaker Hyundai Motor lost 0.44 percent to 224,000 won. Leading steelmaker POSCO lost ground to end trading at 381,500 won.

Mobile operators gained ground on speculation that demand for next-generation mobile technology may boost their bottom lines.

Leading mobile carrier SK Telecom rose 2.46 percent to 145,500 won and smallest operator LG Uplus was up 0.72 percent at 6,950 won.

The local currency closed at 1,141.6 won to the greenback, up 3.6 won from Friday's close, dealers said. (Yonhap)