South Korean stocks fell Tuesday as investors sat on the sidelines following sharp gains the previous session, with US President-elect Donald Trump vowing tariffs on imports from Canada, Mexico and China. The local currency rose against the US dollar.

The benchmark Korea Composite Stock Price Index shed 13.98 points, or 0.55 percent, to close at 2,520.36, ending a two-day winning streak.

Trade volume was moderate at 434.77 million shares worth 8.51 trillion won (US$6.09 billion), with winners outnumbering losers 484 to 389.

The index opened lower, despite US rallies, and had remained in negative territory throughout the session.

Investors were wary of US President-elect Donald Trump's tariff policy as he pledged to impose a 25 percent tariff on all goods from Mexico and Canada, as well as an additional 10 percent tariff on goods from China.

Institutions and foreigners sold a net 238.47 billion won and 35.46 billion won of shares, respectively, while individuals bought a net 187.2 billion won worth of shares.

Big-cap tech shares traded mixed, with bio and financial shares under heavy downward pressure.

Tech giant Samsung Electronics rose 0.69 percent to 58,300 won, and SK hynix edged up 0.06 percent to 177,100 won.

But leading electric vehicle battery maker LG Energy Solution sank 3.22 percent to 406,000 won, while LG Chem went up 0.16 percent to 307,000 won.

Major pharmaceutical firm Samsung Biologics dipped 3.03 percent to 929,000 won, and Celltrion shed 0.68 percent to 175,600 won.

KB Financial Group dropped 2.04 percent to 96,000 won, and Shinhan Financial Group tumbled 3.72 percent to 54,300 won.

But carmakers ended higher. Top automaker Hyundai Motor advanced 2.05 percent to 223,500 won, and its sister affiliate Kia added 0.1 percent to 97,300 won.

Top steelmaker POSCO Holdings rose 0.33 percent to 302,500 won, and Internet platform giant Naver grew 1.24 percent to 195,600 won.

The local currency was trading at 1,398.2 won against the greenback at 3:30 p.m., up 4.0 won from the previous session. (Yonhap)