Seoul shares closed slightly lower on Wednesday as investors stayed cautious ahead of the U.S. Federal Reserve’s rate-setting meeting.

The benchmark Korea Composite Stock Price Index slipped eight-point-55 points, or zero-point-21 percent, to close at four-thousand-135.

Investor sentiment was subdued ahead of the Federal Open Market Committee’s decision expected Thursday morning. Markets anticipate a rate cut, but uncertainty remains regarding future reductions.

Samsung Electronics retreated zero-point-37 percent, and SK hynix jumped three-point-71 percent after announcing plans to list treasury shares in the United States through American Depository Receipts.

Defense shares declined, as Hanwha Aerospace dropped three‑point‑85 percent, Hyundai Rotem fell two‑point‑71 percent and LIG Nex1 lost one‑point‑54 percent.

Entertainment shares gained, with Hybe rising two-point-75 percent on expectations that BTS will resume activities in 2026.

The tech-heavy KOSDAQ added three-point-65 points, or zero-point-39 percent, to close at 935.

The South Korean won strengthened against the U.S. dollar by one-point-nine won, trading at one-thousand-470-point-four won as of 3:30 p.m.