Seoul Shares Plunge 4.8% on Bleak US Economic Data

South Korean stocks tumbled Thursday morning as weaker U.S. economic data and dimmer corporate earnings outlooks battered investor sentiment.

The benchmark Korea Composite Stock Price Index (KOSPI) plunged 4.8 percent or 56.4 points to 1,126.28 as of 11:20 a.m, according to Yonhap News.

"Investor sentiment was hurt by concerns over the deepening global recession and downbeat prospects for corporate earnings," Lee Sun-yup, an analyst at Goodmorning Shinhan Securities, was quoted as saying.

Steep losses caused the Korea Exchange, the bourse operator, to suspend program trading for five minutes after the main index futures prices fell more than 5 percent. It was the first such emergency break this year.

South Korea's fourth-quarter earnings reports will be released starting Thursday, led by steel maker POSCO. The world's No. 4 steel maker plans to report its bottom line after the market closes.

The local currency was trading at 1,367.3 won to the U.S. dollar as of 11:20 a.m., down 19.8 won from Wednesday's close.