Round-up of South Korean financial markets:


** South Korean shares erased much of early gains to end only a bit higher on Thursday amid lacking investor confidence in economic growth after the U.S. Federal Reserve delivered a 75-bp rate hike as expected. The Korean won strengthened, while the benchmark bond yield fell.


** The benchmark KOSPI ended up 4.03 points, or 0.16%, to 2,451.41, snapping a seven-day losing streak. The index rose as much as 2.16% before sharply erasing the gains.


** The U.S. Federal Reserve on Wednesday raised the target federal funds rate by three-quarters of a percentage point to a range of between 1.5% and 1.75%, its largest increase in more than a quarter of a century but widely expected by investors.


** Worries of global economic slowdown remained to be a pressure for the relief rally seen in early session to continue, said Mirae Asset Securities' analyst Seo Sang-young, adding that the country's new economic policies that were supposedly positive for the market had limited impact.


** The South Korean government proposed to lower corporate tax rates and remove capital gains taxes on retail stock investors, as it cut this year's growth outlook on Thursday.


** Meanwhile, the country's top economic and financial officials agreed at a rare meeting to strengthen coordinated efforts to keep the markets stable.


** Among the heavyweights, technology giant Samsung Electronics rose 0.33% but peer SK Hynix fell 0.51%, while battery maker LG Energy Solution gained 1.67%.


** Foreigners were net buyers of 156.4 billion won ($121.46 million) worth of shares on the main board, ending nine-day selling streak.


** The won was last quoted at 1,285.6 per dollar on the onshore settlement platform, 0.38% higher than its previous close.


** In money and debt markets, June futures on three-year treasury bonds fell 0.05 point to 103.70 in late afternoon trade.


** The most liquid 3-year Korean treasury bond yield rose by 3.1 basis points to 3.705%, while the benchmark 10-year yield fell by 5.5 basis points to 3.748%. ($1 = 1,287.7000 won) (Reporting by Jihoon Lee; Editing by Frank Jack Daniel)