Seoul  - Shares edged down Tuesday on the Seoul stock exchange following the US House's rejection of a 700-billion-dollar rescue package for the troubled financial sector.

The Kospi plunged 8.30 points, or 0.57 per cent, to close at 1,448.06.

Declining issues outnumbered advancers 549 to 247.

South Korea Financial Services Commission (FSC) said earlier on Tuesday that the government would ban short selling of stocks for the time being as part of efforts to minimize the fallout from the recection of the US bailout plans.

The main index of the technology-heavy Kosdaq market declined 5.28 points to 440.77.

On currency markets, the US dollar was quoted at 1,207.0 Korean won, down from 1,188.80 won on Monday (dpa)