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KOSPI falls 1.7%, foreigners net sellers

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Korean won hits two-month low

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South Korea benchmark bond yield rises

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For the midday report, please click

SEOUL, Feb 22 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares dropped on Wednesday to their lowest close in a month, weighed down by worries that the U.S. Federal Reserve would deliver more rate increases.

** The Korean won hit a two-month low, while the benchmark bond yield rose.

** The benchmark KOSPI fell 41.28 points, or 1.68%, to 2,417.68 by the close of the session. The index marked the biggest daily percentage fall since Feb. 6 and the lowest closing level since Jan. 20.

** "Wall Street's overnight losses due to inflation concerns stemming from an improvement in economic indicators weighed on overall Asian markets," said Kim Seok-hwan, an analyst at Mirae Asset Securities.

** S&P Global's flash U.S. Composite PMI Output Index increased to 50.2 this month from a final reading of 46.8 in January, ending seven straight months of the index being below the 50 mark.

** The Fed will release the minutes of its latest policy meeting later in the day, while the Bank of Korea is expected to hold its policy rate steady on Thursday.

** A South Korean finance ministry official said the won's recent pace of weakening was somewhat too fast when compared to the trend in other currencies.

** Technology giant Samsung Electronics fell 1.61%, peer SK Hynix lost 2.30%, and battery maker LG Energy Solution dropped 2.31%.

** Of the total 936 issues traded, only 148 shares advanced.

** Foreigners were net sellers of shares worth 240.6 billion won ($184.30 million).

** The won ended onshore trade 0.69% lower at 1,304.9 per dollar, after touching its lowest level since Dec. 19, 2022 at 1,306.2.

** In money and debt markets, March futures on three-year treasury bonds fell 0.11 point to 103.62.

** The most liquid three-year Korean treasury bond yield rose by 2.6 basis points to 3.650%, while the benchmark 10-year yield rose by 4.6 basis points to 3.646%. ($1 = 1,305.4900 won) (Reporting by Jihoon Lee; Editing by Subhranshu Sahu)