An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)

South Korean stocks plunged nearly 2.5 percent Wednesday on dampened hopes that the Federal Reserve will start cutting its rates soon and uncertainties over the Chinese economy. The local currency sharply fell against the US dollar.

The benchmark Korea Composite Stock Price Index dropped 61.69 points, or 2.47 percent, to 2,435.90.

Trading volume was heavy at 950.6 million shares worth 11.01 trillion won ($8.2 billion), with losers far outpacing winners 850 to 70.

Foreigners and institutions dumped shares worth 902.1 billion won and 12 billion won, respectively, while individuals purchased a combined 852.2 billion won.

"After Fed Gov. Christopher Waller said there's no need to rush to start lowering the rates, bets on the Fed's early rate cuts cooled down," Lee Kyoung-min, an analyst at Daishin Securities, said.

Citing CME FedWatch, Lee noted the probability of a rate freeze at the March FOMC meeting jumped to 35.1 percent from 19 percent.

The China factor also weighed on the market amid a continued slump in the housing market and weaker-than-expected retail sales there, Lee added.

In Seoul, most big-cap shares sank in unison.

Market bellwether Samsung Electronics fell 2.2 percent to 71,000 won, and No. 2 chipmaker SK hynix lost 0.83 percent to 131,000 won.

Leading battery maker LG Energy Solution declined 2.62 percent to 390,000 won, its smaller rival Samsung SDI plunged more than 4 percent to 379,000 won, and Posco Future M shot down 4.94 percent to 288,500 won.

Top automaker Hyundai Motor dropped 2.36 percent to 181,800 won, and its smaller affiliate Kia retreated 2.12 percent to 87,900 won.

Steel giant Posco Holdings and leading chemical producer LG Chem also plummeted 4.23 percent and 5.44 percent to 419,000 won and 408,500 won, respectively.

Bio and IT shares also went south.

Bio giant Samsung Biologics dipped 1.31 percent to 756,000 won, and Celltrion slid 5.07 percent to 178,000 won.

Among the few gainers, battery recycling company Ecopro Materials jumped 1.34 percent to 226,500 won.

The local currency ended at 1,344.20 won against the greenback, down 12.4 won from the previous session's close. (Yonhap)