* KOSPI falls, foreigners net sellers

* Korean won strengthens against dollar

* South Korea benchmark bond yield rises

SEOUL, Sept 22 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares are set to log their sharpest weekly decline in almost a year on Friday after U.S. stocks suffered their biggest slump in six months, in a sign that investors expect higher interest rates for longer. The won strengthened, while the benchmark bond yield rose.

** The benchmark KOSPI was down 9.68 points, or 0.38%, to 2,505.29 by 02:59 GMT. For the week, the index is down 3.6% so far, set for the sharpest weekly drop since September last year.

** The S&P 500 dropped 1.6% overnight and is down 2.7% in a week where policymakers chose a hawkish stance, even as a peak in rates is near.

** Among index heavyweights, chipmaker Samsung Electronics fell 0.58% and peer SK Hynix lost 0.17%, while battery-maker LG Energy Solution climbed 1.03%.

** Hyundai Motor shed 0.36% and sister automaker Kia Corp gained 0.13%, while search engine Naver and instant messenger Kakao were down 0.24% and down 0.11%, respectively.

** Of the total 935 traded issues, 279 shares advanced, while 581 declined.

** Foreigners were net sellers of shares worth 65.6 billion won ($49.10 million) on the main board on Friday.

** The won was quoted at 1,338.2 per dollar on the onshore settlement platform, 0.11% higher than its previous close at 1,339.7.

** In offshore trading, the won was quoted at 1,337.8 per dollar, up 0.1% on the day, while in non-deliverable forward trading, its one-month contract was quoted at 1,335.1.

** The KOSPI has risen 12.02% so far this year, but lost 3.5% in the previous 30 trading sessions.

** The won has lost 5.5% against the dollar so far this year.

** In money and debt markets, December futures on three-year treasury bonds was unchanged at 102.90.

($1 = 1,336.0400 won) (Reporting by Cynthia Kim; Editing by Sonia Cheema)