Seoul: South Korean stocks continued to trade lower late Thursday morning as investors sat on the sidelines amid lingering oil price swings sparked by the U.S.-Iran war. The benchmark Korea Composite Stock Price Index (KOSPI) fell 43.49 points, or 0.78 percent, to 5,566.46 as of 11:20 a.m.

According to Yonhap News Agency, the International Energy Agency announced a plan to release oil reserves to ease concerns over supply disruptions at the Strait of Hormuz. Despite this move, investors remained cautious about potential long-term instability at the key waterway.

Top tech giant Samsung Electronics experienced a decline, falling 1.37 percent, with SK hynix also shedding 1.36 percent. In the financial sector, brokerage houses traded lower, with Mirae Asset Securities falling 1.68 percent, and Kiwoom Securities losing 0.33 percent.

Conversely, refiners showed gains, as SK Innovation advanced 2.59 percent and S-Oil gained 1.92 percent. In the battery sector, LG Energy Solution rose 0.54 percent, while Samsung SDI saw a decline of 0.62 percent.

The Korean won was trading at 1,478.9 won against the U.S. dollar, down 12.4 won from the previous session.