South Korean shares ended in negative territory for the first time in four days Thursday as concerns emerged over the Chinese economy after the announcement of downbeat manufacturing activity in China.

The benchmark Korea Composite Stock Price Index (KOSPI) sank 22. 83 points, or 1.16 percent, to close at 1,947.59. Trading volume stood at 222.45 million shares worth 3.38 trillion won (3.15 billion U.S. dollars).

China's purchasing managers' index (PMI) surveyed by HSBC came in at 49.6 in January, down from 50.5 in the prior month. It was the first decline in six months, falling into the contraction territory.

The downbeat data raised concerns over the world's second- largest economy among investors.

Foreign and institutional investors offloaded shares worth 159. 2 billion won and 40 billion won respectively. Retail investors bought a net 198.6 billion won worth of stocks, limiting the KOSPI' s further decline.

Some market watchers said that the KOSPI was oversold as economic data in China tended to be distorted ahead of the week- long Lunar New Year's holiday, noting that factories in China tended to close down ahead of one of the biggest holidays.

Worries about the fourth-quarter earnings season also weighed down market sentiment. Top automaker Hyundai Motor retreated 1.9 percent after unveiling the weak earnings.

Hyundai's operating profit fell 1.5 percent in 2013 from a year earlier, recording the first decline in three years due to weak domestic demand and the weak trend of the Japanese yen.

Market bellwether Samsung Electronics decreased 2.2 percent ahead of the earnings announcement Friday. The nation's biggest steelmaker POSCO slid 1.8 percent, and memory chip giant SK Hynix declined 2.5 percent. The state-run power supplier Korea Electric Power Corp. (KEPCO) dipped 1.4 percent, and leading chemical firm SK Telecom lost 1.6 percent.

The South Korean currency finished at 1,073.9 won against the greenback, down 6.5 won from Wednesday's close.

Bond prices ended higher. The yield on the liquid three-year treasury notes fell 0.01 percentage point to 2.90 percent and the return on the benchmark 10-year government bonds lost 0.03 percentage point to 3.65 percent. Endi

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