By Kim Yeon-hee

SEOUL, Nov 5 (Reuters) - Seoul shares fell on Thursday, with

trade volume decreasing to the lowest in more than 14 months and

Hyundai Motor battered by concerns about potential

U.S. market share loss.

With uncertainty about any sustainable economic recovery

prevailing, the strengthening won added pressure to

exporters such as Samsung Electronics and Hynix

Semiconductor.

Foreign investors unloaded a net 25 billion won ($21 million)

worth of shares, shifting to selling after a four-session buying

streak.

'Foreign investors had bought in when the dollar/won rate was

at 1,500 won. Now that the rate has come down to the 1,170 won

level, it does not look attractive to enter domestic markets from

their perspective,' said Yoon Jeong-ho, a fund manager at

Heungkuk Asset Management.

'With market talk growing that foreign investors may unwind

dollar carry trade, it's unlikely the market will turn higher

until economic data comes out strong and provides fresh

momentum.'

The Korea Composite Stock Price Index shed 1.75

percent to 1,552.24 points, with about 201 million shares

changing hands, the smallest amount since late August, 2008.

Hyundai Motor, the world's No. 4 carmaker along with its

affiliate Kia Motors based on first half sales,

dropped 4.2 percent to 102,000 won.

Analysts said the country's top automaker, focused on small

and medium-sized car sales in the world's largest market, could

lose market share to sports utility vehicle (SUV) and pick-up

truck makers, which are leading a gradual rebound in U.S. auto

sales.

Hynix, the world's No. 2 memory chipmaker, closed down 3.4

percent and its bigger rival Samsung Electronics fell 2.9

percent, with the won currency gaining about 35 percent against

the U.S. dollar from its March lows to date.

Keywords: MARKETS KOREA STOCKS/

Investors are waiting for signs of employment growth in

advanced markets to assess whether economic recovery supported by

stimulus policies will be sustainable after stimulus packages

come to an end.

The U.S. Labour Department is set to release first-time

claims for jobless benefits for the week ended Oct. 31 later in

the day.

Among financial stocks, South Korea's No. 3 card issuer

Samsung Card fell 4.9 percent to its session low, its

weakest level in more than three months.

Woori Finance Holdings, South Korea's No. 3

banking group, bucked the trend, up 1.3 percent, after it

delivered robust quarterly results last week.

Ssangyong Motor added 1.1 percent, ahead of a

court decision over its proposed self-rescue plan on Friday.

Decliners outnumbered advancers 608 to 194, with 70 issues

unchanged.

The KOSPI 200 December futures index ended down 2.30

points to 203.45, while the KOSPI 200 spot index

declined 3.66 points to 203.52.

The junior Kosdaq market dropped 0.91 percent to

finish at 479.46 points.

Move on day -1.75 percent

12-month high 1,723.17 23 SEPT 2009

12-month low 914.02 21 NOV 2008

Change on yr +38.0 percent

All time high 2,085.45 1 NOV 2007

All time low 93.10 6 JAN 1981

($1=1176.8 Won)

(Editing by Jonathan Hopfner)

((yeonhee.kim@thomsonreuters.com; +82 2 3704 5646; Reuters

Messaging: yeonhee.kim.reuters.com@reuters.net))

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