Roundup: S. Korean shares post biggest fall in 3 years on Greece woes

South Korean shares posted the biggest decline in more than three years on Monday after Greece rejected a reforms-for-cash deal, offered by creditors, in a Sunday referendum.

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 50.48 points, or 2.40 percent, to 2,053.93 at the close. Trading volume stood at 463.77 million shares worth 6.28 trillion won (5. 58 billion U.S. dollars).

The daily decline was the largest since June 4, 2012, as foreigners dumped local stocks amid worries about the so-called Grexit, or Greek exit from the euro area.

More than 60 percent of Greek voters rejected further austerity, including spending cuts and tax increases, demanded by other European creditors.

The unexpectedly high rate of rejection raised possibility for Greece facing an all-out default and an exit from the single currency area.

Foreigners reduced stock holdings by 288 billion won, and local institutions dumped shares worth 217 billion won. Retail investors bought shares worth 493 billion won, but their purchases failed to limit the sharp stock fall.

The volatility index for the KOSPI 200 index, dubbed a fear indicator as it gauges anxieties among market players, surged 12 percent, or 1.65 points, to 15.4 at the close. It was the second- highest close this year.

Most large-cap shares lost ground. Market bellwether Samsung Electronics declined 3 percent, and memory chip giant SK Hynix tumbled 4.5 percent. Top automaker Hyundai Motor slid 1.5 percent, and leading cosmetics maker AmorePacific dropped 3.8 percent.

Cheil Industries, the de-facto holding company of Samsung Group, sank 3.3 percent, and the biggest life insurer Samsung Life Insurance retreated 3.7 percent. The No.1 auto parts maker Hyundai Mobis lost 1.5 percent, but the state-run power supplier Korea Electric Power Corp. added 0.2 percent.

The South Korean currency finished at 1,126.5 won against the greenback, down 3.5 won from Friday's close.

Bond prices ended mixed. Yields on the liquid three-year treasury notes added 0.3 basis points to 1.829 percent, but the return on the benchmark 10-year government bonds dropped 5.7 basis points to 2.465 percent. Endi