Seoul: South Korean stocks traded lower late Monday morning as investor concerns grew over a prolonged conflict in the Middle East after the U.S.-Iran peace talks failed to make progress, while U.S. President Donald Trump threatened a blockade of the Strait of Hormuz. The benchmark Korea Composite Stock Price Index (KOSPI) fell 68.15 points, or 1.16 percent, to 5,790.72 as of 11:20 a.m.

According to Yonhap News Agency, President Trump announced a blockade of Iranian ports following marathon talks between Washington and Tehran in Islamabad over the weekend that ended without progress. The U.S. military stated that the measure would take effect at 10 a.m. Monday (U.S. time). "The breakdown in the talks and the possible U.S. blockade of the Strait of Hormuz could fuel uncertainties, intensifying concerns over global supply chains," said Seo Sang-young, an analyst at Mirae Asset Securities.

In Seoul, market bellwether Samsung Electronics fell 2.31 percent, and Hanmi Semiconductor, a major chip equipment manufacturer, dipped 2.8 percent. Shipbuilders also traded lower, with HD Hyundai Heavy Industries declining 2.11 percent and Hanwha Ocean dropping 2.19 percent. Bio giant Samsung Biologics decreased 1.27 percent, and Celltrion retreated 2.2 percent.

However, food giant CJ Cheiljedang added 0.84 percent, and Samyang Foods, best known for the global hit Buldak ramyeon series, jumped 4.85 percent. The local currency was trading at 1,489.9 won against the greenback at 11:20 a.m., down 7.8 won from the previous session.