Seoul: South Korean stocks fell for the second consecutive session Monday amid lingering worries over artificial intelligence (AI)-related sectors. The local currency sharply declined against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) lost 7.2 points, or 0.19 percent, to close at 3,846.06, following a 3.79 percent drop on Friday.

The KOSPI opened higher on foreign buying due to revived hopes for a rate cut in the United States, but offshore investors turned to net sellers in the afternoon, dragging down the index. Trade volume was moderate at 363.4 million shares worth 20.3 trillion won (US$13.8 billion), with decliners outnumbering gainers 576 to 306.

Foreign investors led the daily decline by dumping a net 427.1 billion won worth of shares, along with individuals who sold a net 454 billion won. Institutions, however, purchased a net 896.9 billion won. "Foreigners bought tech shares, especially Samsung Electronics, but the entire index did not benefit from their purchase," said Lee Jae-won, an analyst from Shinhan Securities.

Major shares ended in negative territory. Chip giant SK hynix retreated 0.19 percent to 520,000 won, and top carmaker Hyundai Motor fell 0.77 percent to 257,500 won. Leading battery maker LG Energy Solution sank 3.17 percent to 412,000 won, and steelmaker POSCO Holdings decreased 2.58 percent to 302,500 won. Defense giant Hanwha Aerospace fell 1.61 percent to 855,000 won, and major retailer Shinsegae tumbled 5.26 percent to 216,000 won.

Samsung Biologics declined 0.45 percent to 1.78 million won on its first day of trading after a spinoff of its biosimilar development business. Samsung Electronics, however, gained 2 percent to 96,700 won, and gamemaker NCSOFT surged 5.85 percent to 202,500 won on the popularity of its new game title, Aion 2.

The local currency was quoted at 1,477.1 won against the greenback at 3:30 p.m., down 1.5 won from the previous session.