S.Korean shares drop on recession worries; won falls most in 16 months

* KOSPI falls 1.8%, ends three-day rise

* Korean won posts worst day in 16 months

* South Korea benchmark bond yield flat

* For the midday report, please click

SEOUL, June 29 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares dropped 1.8% on Wednesday as worries resurfaced about a recession from high inflation and monetary policy tightening. The won posted its worst daily performance in 16 months, while the benchmark bond yield was flat.

** The benchmark KOSPI ended down 44.10 points, or 1.82%, at 2,377.99, snapping a three-session rising streak.

** Both in the United States and South Korea, consumer confidence fell sharply in June amid worries about high inflation.

** Recession worries after weak U.S. data and fears of a big interest rate hike from the Bank of Korea due to rising inflation expectations weighed on the market, said Daishin Securities’ analyst Lee Kyoung-min.

** Among heavyweights, technology giant Samsung Electronics and peer SK Hynix fell 2.36% and 1.36% respectively, tracking a sharp drop of the Philadelphia Semiconductor Index overnight.

** LG Energy Solution lost 4.63% after the battery maker said it would re-evaluate its investment plan for a standalone Arizona battery factory. Its parent company LG Chem dropped 7.02%.

** Hyundai Motor and Kia Corp fell 5.65% and 6.11%, respectively, after German authorities raided the automakers over allegations that they put over 210,000 diesel vehicles with suspected illegal defeat devices onto the road.

** Kakaobank declined 7.85% to its lowest-ever close since the August 2021 listing after a local brokerage’s unusual “underperform” rating.

** Foreigners were net sellers of 226.1 billion won ($174.07 million) worth of shares on the main board.

** The won was last quoted at 1,299.0 per dollar on the onshore settlement platform, 1.20% lower than its previous close. The currency posted its worst daily performance since Feb. 26, 2021.

** In money and debt markets, September futures on three-year treasury bonds rose 0.08 point to 103.46 in late afternoon trade.

** The most liquid 3-year Korean treasury bond yield rose by 1.4 basis points to 3.553%, while the benchmark 10-year yield fell by 0.3 basis point to 3.661%. ($1 = 1,298.9300 won) (Reporting by Jihoon Lee; Editing by Subhranshu Sahu)