(Updates to close)

* Focus shifts to economy, oil price worries

* Won cuts losses as exporters sell dollars

* Bonds gain on global selloff of risky assets

SEOUL, Feb 23 (Reuters) - The South Korean won fell against the dollar on Thursday as renewed concern about a slump in euro zone economies sparked a global selloff of risky assets, although losses were stemmed by demand from exporters.

The won ended local trade at 1,129.0 per dollar, down from Wednesday's local close at 1,126.0 but off a session low of 1,130.3, the weakest since Feb. 16.

"Exporters led by shipbuilders started to sell dollars when it touched the 1,130 won mark, providing quite solid backing for the won," said a domestic bank dealer, adding that any rebound was checked by dollar demand from oil importers.

South Korea is one of the largest oil importers in the region and rising crude prices are a serious concern for the country as a whole as well as a direct boost to the dollar.

Finance Minister Bahk Jae-wan told reporters near the end of local trade that the government would take measures if oil prices rose sharply, without elaborating but indicating that a sales tax cut could be considered.

The Seoul stock market's benchmark KOSPI lost 1 percent as foreign investors turned net sellers after heavy purchases in recent sessions. The KOSPI is still up nearly 10 percent this year.

Government bond prices rose across the board, as the global selloff of equities and other risky assets lifted the safe-haven appeal of bonds. March futures on three-year treasury bonds also gained 0.09 points to 104.24.

Close Prev close Dollar/won 1,129.0 1,126.0 Yen/won 14.0495/575 14.0599/732 *KTB futures 104.24 104.15 5-yr treasury bonds 3.57 pct 3.59 pct 3-yr treasury bonds 3.44 pct 3.46 pct Average call rate 3.25 pct 3.25 pct ^6-mth KORIBOR 3.57 pct 3.57 PCT KOSPI 2,007.80 2,028.65 * Front-month futures on three-year treasury bonds ^ Korea interbank offered rate (Reporting by Park Ye-na and Yoo Choonsik; Editing by Chris Lewis)

First Published: 2012-02-23 02:41:11
Updated 2012-02-23 11:03:47





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