* KOSPI falls, foreigners net buyers

* Korean won little changed against dollar

* South Korea benchmark bond yield falls

SEOUL, Feb 26 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares fell on Monday as the government's announcement of corporate reform measures did not meet market expectations.

** The benchmark KOSPI closed down 20.62 points, or 0.77%, at 2,647.08, after falling as much as 1.42% earlier.

** South Korea announced on Monday a reform plan for listed companies to boost shareholder returns in an effort to reduce the "Korea discount" on stock prices.

** "Now with the policy unveiled, stock prices need to be seen from a mid- to long-term perspective with a focus on each company's response," said Seo Jung-hun, an analyst at Samsung Securities.

** The decline was led by shares of banks and automakers, which had led a recent rally before the government's policy announcement, among other stocks often considered undervalued.

** The Korea Stock Exchange Finance-Major Index dropped 3.33%, while the Transport Equipment Index lost 1.35%, with Hyundai Motor down 2.05% and sister automaker Kia Corp down 3.21%.

** Of the total 934 traded issues, 233 shares advanced, while 660 declined.

** Foreigners were net buyers of shares worth 114.1 billion won ($85.74 million) on the main board.

** The won ended onshore trade at 1,331.1 per dollar, 0.01% lower than its previous close at 1,331.0.

** In money and debt markets, March futures on three-year treasury bonds rose 0.15 point to 104.67.

** The most liquid three-year Korean treasury bond yield fell by 3.3 basis points to 3.341%, while the benchmark 10-year yield fell by 6.1 basis points to 3.406%. ($1 = 1,330.8000 won) (Reporting by Jihoon Lee, Additional Reporting by Youn Ah Moon; Editing by Sohini Goswami)