Round-up of South Korean financial markets:

** South Korean shares slipped on Monday as investors grappled with tensions in the Middle East following Iran's unprecedented attack on Israel over the weekend. The won hit a 17-month low, while the benchmark bond yield rose.

** The benchmark KOSPI fell 11.39 points, or 0.42%, to 2,670.43 by 06:30 GMT. ** South Korea's finance minister stepped up warnings that the government is ready to act to counter any renewed volatility in currency markets after the won extended declines against the dollar. ** Iran launched explosive drones and fired missiles at Israel late on Saturday in its first direct attack on Israeli territory, a retaliatory strike that raised the threat of a wider regional conflict.

** Among index heavyweights, chipmaker Samsung Electronics fell 1.79% and peer SK Hynix gained 0.43%, while battery maker LG Energy Solution climbed 0.40%. ** Hyundai Motor added 1.47% and sister automaker Kia Corp gained 4.37%, while search engine Naver and instant messenger Kakao were down 1.67% and down 0.21%, respectively. ** Of the total 927 traded issues, 303 shares advanced, while 583 declined. ** Foreigners were net sellers of shares worth 238.8 billion won on the main board on Monday. ** The won was quoted at 1,384.0 per dollar on the onshore settlement platform, 0.62% lower than its previous close at 1,375.4. ** The won has lost 6.9% against the dollar so far this year. ** In money and debt markets, June futures on three-year treasury bonds fell 0.10 point to 104.33. ** The most liquid three-year Korean treasury bond yield rose by 3.3 basis points to 3.440%, while the benchmark 10-year yield rose by 1.7 basis points to 3.558%. (Reporting by Cynthia Kim; Editing by Sohini Goswami)