Seoul shares fall led by Hyundai; trade shrinks

* KOSPI sinks 1.75 pct

* Trade volume at lowest since late Aug, 2008

* Foreign investors turn sellers after four sessions buying

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(Adds fund manager comment, other share prices)

By Kim Yeon-hee

SEOUL, Nov 5 (Reuters) - Seoul shares fell on Thursday, with trade volume decreasing to the lowest in more than 14 months and Hyundai Motor (005380.KS) battered by concerns about potential U.S. market share loss.

With uncertainty about any sustainable economic recovery prevailing, the strengthening won KRW= added pressure to exporters such as Samsung Electronics (005930.KS) and Hynix Semiconductor (000660.KS).

Foreign investors unloaded a net 25 billion won ($21 million) worth of shares, shifting to selling after a four-session buying streak.

"Foreign investors had bought in when the dollar/won rate was at 1,500 won. Now that the rate has come down to the 1,170 won level, it does not look attractive to enter domestic markets from their perspective," said Yoon Jeong-ho, a fund manager at Heungkuk Asset Management.

"With market talk growing that foreign investors may unwind dollar carry trade, it's unlikely the market will turn higher until economic data comes out strong and provides fresh momentum."

The Korea Composite Stock Price Index shed 1.75 percent to 1,552.24 points, with about 201 million shares changing hands, the smallest amount since late August, 2008.

Hyundai Motor, the world's No. 4 carmaker along with its affiliate Kia Motors (000270.KS) based on first half sales, dropped 4.2 percent to 102,000 won.

Analysts said the country's top automaker, focused on small and medium-sized car sales in the world's largest market, could lose market share to sports utility vehicle (SUV) and pick-up truck makers, which are leading a gradual rebound in U.S. auto sales.

Hynix, the world's No. 2 memory chipmaker, closed down 3.4 percent and its bigger rival Samsung Electronics fell 2.9 percent, with the won currency gaining about 35 percent against the U.S. dollar from its March lows to date.