S.Korean shares edge down; LG Energy Solution hits record low

SEOUL, May 20 (Reuters) - Round-up of South Korean financial markets:

South Korean shares closed marginally weaker on Tuesday as battery makers slumped on worries over a sweeping new U.S. tax bill, although gains in heavyweight chipmakers capped further losses.

The benchmark KOSPI .KS11 closed down 1.62 points, or 0.06%, at 2,601.80.

U.S. President Donald Trump will join the congressional debate over his sweeping tax bill on Tuesday, as Republicans who control the House of Representatives struggle to keep their fragile majority together for a crucial vote later this week.

The bill cancels funding for green-energy grant programs in the 2022 Inflation Reduction Act (IRA), including vehicle manufacturing, home efficiency upgrades, electricity transmission, wind power.

"South Korean battery stocks weakened on worries about an early scrapping of the IRA's tax credits," said Na Jeong-hwan, analyst at NH Investment Securities.

LG Energy Solution 373220.KS slid 4.12% to the lowest on record, while peer Samsung SDI 006400.KS dropped 4.66% to an eight-year low. SK Innovation 096770.KS also fell 3.65%.

Battery materials makers LG Chem 051910.KS lost 3.12%.

In contrast, chipmaker heavyweight Samsung Electronics 005930.KS rose 0.18%, while peer SK Hynix 000660.KS gained 1.30%.

Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 0.79% and 0.33%, respectively. Steelmaker POSCO Holdings 005490.KS shed 1.83%, while drugmaker Samsung Biologics 207940.KS fell 0.10%.

Of the total 936 traded issues, 554 shares advanced, while 337 declined.

Foreigners were net sellers of shares worth 114.1 billion won ($82 million).

The won was quoted at 1,392.4 per dollar on the onshore settlement platform KRW=KFTC, 0.27% lower than its previous close at 1,388.7.

In money and debt markets, June futures on three-year treasury bonds KTBc1 gained 0.11 point to 107.60.

The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 4.6 basis points to 2.330%, while the benchmark 10-year yield KR10YT=RR fell by 3.8 basis points to 2.711%.

($1 = 1,391.4200 won)