Seoul  - Shares fell sharply Thursday on the Seoul stock exchange on heavy foreign selling prompted by a steep decline in the US market and concerns over mounting inflationary pressure.

The benchmark Kospi index fell 42.31 points, or 2.4 per cent, to close at 1,739.36.

Declining issues outnumbered advancers 562 to 231.

The main index of the technology-heavy Kosdaq market slipped 47 points to 624.20.

On currency markets, the US dollar was quoted at 1,034.0 Korean won, after 1,030.0 won on Wednesday. (dpa)