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KOSPI falls 1.8%, foreigners net buyers

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Korean won weakens against dollar

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South Korea benchmark bond yield rises

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For the midday report, please click

SEOUL, Oct 13 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares on Thursday dropped nearly 2% to their lowest levels in two weeks, with investors taking a cautious approach ahead of U.S. inflation data. The Korean won weakened, while the benchmark bond yield jumped.

** The benchmark KOSPI ended down 39.60 points, or 1.80%, at 2,162.87, the lowest closing level since Sept. 30.

** Investor focus has shifted to September U.S. inflation data due later in the global day.

** "Unfavourable market conditions are continuing with high level of inflation resulting in both monetary tightening and economic recession," said Daishin Securities' analyst Lee Kyoung-min, who added that losses extended on foreign selling of futures due to options expiry.

** Among heavyweights, technology giant Samsung Electronics fell 1.08%, peer SK Hynix gained 0.96% and battery maker LG Energy Solution declined 1.24%.

** Leading the market's losses were internet platform operators. Naver lost 2.16%, while Kakao dropped 5.12%, with affiliates Kakaobank and Kakaopay down 6.76% and 4.97%, respectively.

** Of the total traded issues of 932, the number of advancing shares was 73.

** Foreigners were net buyers of shares worth 193.2 billion won ($134.99 million) on the main board, extending buying streak to a ninth session.

** The won was last quoted at 1,431.3 per dollar on the onshore settlement platform, 0.45% lower than its previous close. In offshore trading, the won was quoted down 0.4% at 1,430.8.

** In money and debt markets, December futures on three-year treasury bonds fell 0.31 point to 101.93.

** The most liquid three-year Korean treasury bond yield rose by 7.9 basis points to 4.188%, while the benchmark 10-year yield jumped 11.0 basis points to 4.227%.

($1 = 1,431.2200 won) (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)