* KOSPI drops over 1%; reverses 1.2% gains in early session
* Foreigners sell net $1.4 bln in KOSPI, most on record
* Korean won weakens against U.S. dollar
* South Korea benchmark bond yield rises
* For the midday report, please click
SEOUL, Aug 31 (Reuters) - Round-up of South Korean financial markets:
** South Korean shares closed more than 1% lower on Monday, erasing previous session’s gains, on a huge foreign sell-off due to economic concerns in the backdrop of downbeat July factory data and tougher coronavirus-led social distancing measures.
** The won weakened, while the benchmark bond yield rose.
** The benchmark KOSPI closed down 27.63 points, or 1.17%, at 2,326.17. For August, the index was up 3.4%, recording a fifth straight monthly gain.
** Heavyweights such as Samsung Electronics Co Ltd and SK Hynix Inc declined 2.5% and 3.5%, respectively.
** Foreigners sold a net 1.62 trillion won ($1.37 billion) worth of shares on the main board, the largest on record.
** Slower-than-expected July data, which did not reflect the resurgence in COVID-19 cases, raised worries that economic indicators could worsen going forward, while foreigners’ selloff was focused in the electronics sector, Daishin Securities analyst Lee Kyoung-min said.
** Industrial output in South Korea, which reported 248 new cases, rose at a much slower pace in July and missed forecasts. Investors are worried about the impact due to restrictions on dine-ins in Seoul area too.
** The won ended at 1,187.8 per dollar on the onshore settlement platform, down 0.29%. The currency edged up 0.3% on a monthly basis, marking the third consecutive month of gains.
** In offshore trading, the won was quoted at 1,187.6 per dollar, down 0.6% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,187.6.
** In money and debt markets, September futures on three-year treasury bonds fell 0.11 point to 111.84.
** The most liquid 3-year Korean treasury bond yield rose by 4.1 basis points to 0.936%, while the benchmark 10-year yield rose by 2.2 basis points to 1.508%. ($1 = 1,187.6300 won)
Reporting by Joori Roh; editing by Uttaresh.V
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