*

KOSPI falls, foreigners net sellers

*

Korean won weakens against dollar

*

South Korea benchmark bond yield rises

SEOUL, Feb 27 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares dropped more than 1% on Monday after higher-than-expected U.S. economic data sparked worries that the Federal Reserve will prolong its interest rate-hiking cycle.

** The Korean won touched its lowest in more than two months, while the benchmark bond yield jumped.

** The benchmark KOSPI was down by 29.39 points, or 1.21%, at 2,394.22, as of 0132 GMT, after falling as much as 1.64% earlier in the day.

** Data showed last Friday that U.S. consumer spending increased by the most in nearly two years in January amid a surge in wage gains while inflation accelerated, adding to market fears that the Fed could continue raising interest rates into summer.

** "Rather than returning to 50-basis-point steps, the Fed is likely to opt for 25-bp rate hikes for a longer period of time," said Kim Seok-hwan, an analyst at Mirae Asset Securities.

** SeAH Besteel Holdings Corp jumped by the daily limit of 30% to nearly three-month high on reports that its affiliate was in talks with SpaceX for a supply contract.

** Shares of technology giant Samsung Electronics fell 1.47%, peer SK Hynix lost 1.43%, and battery maker LG Energy Solution declined 1.37%.

** Of the total 931 issues traded, only 134 shares advanced.

** Foreigners were net sellers of shares worth 144.8 billion won ($110.14 million).

** The won was quoted 0.75% lower at 1,314.7 per dollar on the onshore settlement platform, after touching its lowest level since Dec. 16, 2022 at 1,315.9.

** In money and debt markets, March futures on three-year treasury bonds fell 0.30 point to 103.61.

** The most liquid three-year Korean treasury bond yield rose by 9.8 basis points to 3.656%, while the benchmark 10-year yield climbed 7.3 basis points to 3.607%.

($1 = 1,314.6500 won)

(Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)