Seoul, Jan 26 (NationPress) The South Korean stock market experienced a decline on Monday, breaking a three-day upward trend as investors remained cautious ahead of a key U.S. interest rate meeting amidst escalating geopolitical tensions in Iran. The Korean won appreciated significantly against the U.S. dollar, and the tech-heavy KOSDAQ index soared over 7 percent, surpassing the 1,000 mark for the first time in more than four years, according to reports from Yonhap news agency.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 40.48 points, equivalent to 0.81 percent, closing at 4,949.59.

Despite enjoying solid gains this year and hovering above the 5,000-point level since last Thursday, the KOSPI has yet to finish above this benchmark.

Trading volume was moderate, with 438 million shares exchanged, amounting to 22.5 trillion won (approximately US$15.6 billion), and the number of gainers significantly outnumbered the losers, 502 to 391.

Institutional and foreign investors sold 158.4 billion won and 1.54 trillion won, respectively, while individual investors made a net purchase of 1.71 billion won.

Market analysts noted that investors are adopting a cautious stance ahead of critical events this week, including the Federal Reserve's interest rate announcement and the release of fourth-quarter earnings from major corporations, such as Samsung Electronics and SK hynix.

The ongoing geopolitical strain between the U.S. and Iran, along with Washington's interests in Greenland, has also contributed to investor apprehension.

Han Ji-young, a researcher at Kiwoom Securities, commented, "The optimistic outlook for fourth-quarter earnings in the semiconductor sector has largely been reflected in recent stock price increases." She added, "Investors should closely monitor companies' conference calls for insights into their strategies for HBM4 chips and general-purpose memory supplies."

Leading tech company Samsung Electronics remained stable at 152,100 won, while its competitor SK hynix saw a decline of 4.04 percent, closing at 736,000 won.

Prominent automotive manufacturer Hyundai Motor dropped by 3.43 percent to 492,500 won, and its affiliate Kia also fell by 3.51 percent to 155,200 won.

Financial institutions also saw losses, with KB Financial slipping 0.07 percent to 135,500 won and Shinhan Financial decreasing by 1.79 percent to 82,400 won.

Meanwhile, the KOSDAQ index surged by 7.09 percent to close above 1,000, marking a significant milestone after more than four years.