Seoul - Shares surged 3.4 per cent Tuesday on the Seoul stock exchange on heavy foreign and institutional buying. South Korea's currency soared against the dollar.

The benchmark Kospi index gained 38.42 points to close at 1,163.88. Advancing issues outpaced decliners 667 to 167.

The main index of the technology-heavy Kosdaq market rose 6.89 points, or 1.78 per cent, to 394.66.

On currency markets, the US dollar was quoted at 1,408.5 Korean won, after Monday's close of 1,440 won. (dpa)