** South Korean shares fell on Thursday to be on track to snap a five-day rally, after the U.S. Federal Reserve signalled it might raise interest rates at a much faster pace than expected.
** The won lost more than 1%, while the benchmark bond yield rose.
** The benchmark KOSPI fell 23.36 points, or 0.71%, to 3,255.32 by 0052 GMT, sliding from its all-time high touched on Wednesday. The index is up 13.29% so far this year.
** U.S. central bank officials moved their first projected rate increases from 2024 into 2023 and opened talks about when to pull back on the Fed's $120 billion in monthly bond purchase.
** Among heavyweights, technology giant Samsung Electronics fell 1.10% and peer SK Hynix fell 2.32%. LG Chem rose 2.85% and Naver slid 1.41%.
** Foreigners were net sellers of 157.4 billion won ($139.39 million) worth of shares on the main board.
** Meanwhile, South Korean central bank said on Thursday it has agreed to renew an existing currency swap agreement with the U.S. Federal Reserve for another three months to at least Dec. 31, 2021.
** The won was quoted at 1,129.2 per dollar on the onshore settlement platform, down 1.06% and set for the sharpest decline in near four months.
** In offshore trading, the won was quoted at 1,128.8 per dollar, up 0.3%, while in non-deliverable forward trading, its one-month contract was quoted at 1,128.4.
** In money and debt markets, September futures on three-year treasury bonds fell 0.12 point to 110.22.
** The most liquid 3-year Korean treasury bond yield rose by 3.6 basis points to 1.322%.
($1 = 1,129.2200 won)
(Reporting by Joori Roh; editing by Uttaresh.V)