South Korean shares closed more than 1% lower on Thursday as investors sought to book profits after stocks hit a two-month high in the previous trading session.

The Korea Composite Stock Price Index, or Kospi, was down by 31.57 points, or 1.24%, to close at 2,515.49. The Kosdaq decreased by 8.3 points, or 1.13%, to end at 724.01.

In economic news, South Korea's real gross domestic product increased 0.1% in the fourth quarter of 2024 from the previous quarter, according to an advance estimate by the Bank of Korea on Thursday.

According to a median forecast of economists polled by Reuters, the country's real GDP was expected to grow 0.2% on a quarterly basis.

The economy expanded by 1.2% in Q4 on an annual basis, slower than the growth of 1.5% in Q3. The Q4 annual growth was weaker than economists' expectations of a 1.4% increase during the period, as polled by Reuters.

Meanwhile, gross domestic income increased 0.6% on an on-quarter basis in Q4 and rose 3.9% on an on-year basis.

In corporate news, LG Innotek (KRX:011070) posted fourth-quarter 2024 net income of 106.9 billion won, down 69.5% from 350.8 billion won a year earlier. Its shares declined nearly 7%.