A stock ticker at Hana Bank headquarters in central Seoul shows the benchmark KOSPI closing at 8,801.49, up 0.15 percent from the previous trading session, Tuesday.

Yonhap Korea's benchmark KOSPI recovered from steep intraday losses Tuesday as retail and institutional investors stepped in to offset heavy foreign selling following the market's recent rally.

The benchmark index closed at 8,801.49, up 0.15 percent from the previous session, extending its streak of record-high closes to a third consecutive trading day.

After rising as high as 8,933.62 shortly after the opening bell, just 66 points shy of the unprecedented 9,000 mark, KOSPI tumbled to the 8,500 level during intraday trading before rebounding late in the session.

The volatile session came a day after the benchmark index closed at a record high of 8,788.38.