(2nd LD) Seoul stocks sink over 3 pct, won dips by most in 5 years on Brexit

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SEOUL, June 24 (Yonhap) -- South Korean shares fell by more than 3 percent Friday, the biggest daily loss of the year, with its currency sinking by the most in five years to the U.S. dollar, bracing for repercussions from Britain's exit from the European Union (EU).

The country's benchmark Korea Composite Stock Price Index (KOSPI) shed 61.47 points, or 3.09 percent, to 1,925.24. From a session earlier, the Korean won fell 28.70 won, or 2.6 percent, against the greenback to trade at 1,179.90 won.

Analysts expected increased volatility in the domestic stock and currency markets as Britain voted to separate from the EU.

"The Brexit decision will have an impact on the local markets for the rest of the year. There will be a growing demand for further rate cuts, extra spending and stimulus packages to support the economy," KDB Daewoo Securities Co. analyst Yoon Yeo-sam said.

The government and the Korea Exchange, the operator of the country's main stock exchange, held an emergency meeting on Friday afternoon to discuss ways to cope with capital outflows and financial volatility.

"The government will be ready to take pre-emptive measures to stabilize the markets if excessive and sudden volatility arises," Financial Services Commission Chairman Yim Jong-yong said.

The main index opened up at 2,001.55 but turned lower on late Friday morning as early vote results on Britain's EU membership withdrawal showed a tight race. The British broadcaster BBC's projections that Britons will vote to leave the EU sent it lower.

Britain's decision to leave the 28-nation bloc was not widely expected until vote counting started. Polls conducted after the murder of pro-EU lawmaker Jo Cox last week indicated the "remain" camp was ahead of the "leave" camp.

Most large-cap stocks declined across the board.

Market bellwether Samsung Electronics Co. shed 2.10 percent to 1,400,000 won, top carmaker Hyundai Motor Co. fell 1.06 percent to 139,500 won, and state utility Korea Electric Power Corp. declined 1.88 percent to 57,400 won.

kyongae.choi@yna.co.kr
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