Seoul: South Korean stocks traded weaker late Thursday morning as investors took profit following strong gains in the previous session despite an overnight rally on Wall Street. The benchmark Korea Composite Stock Price Index had slumped 22.32 points, or 0.88 percent, to 2,524.74 as of 11:20 a.m.

According to Yonhap News Agency, the decline in Seoul shares was in stark contrast to the buoyant performance of U.S. stocks, which were propelled by optimism surrounding joint artificial intelligence investments by OpenAI, Oracle, and SoftBank, endorsed by President Donald Trump. The S and P 500 rose 0.61 percent, reaching its highest level in over a month, while the Dow Jones Industrial Average and Nasdaq climbed 0.30 percent and 1.28 percent, respectively.

In Seoul, losses were primarily led by chipmakers, with market heavyweight Samsung Electronics falling 0.92 percent, and chip rival SK hynix plunging 3.1 percent, despite having reported strong earnings before the market opened. Automotive and steel shares also retreated, as leading automaker Hyundai Motor and Kia saw declines of 0.48 percent and 1.36 percent, respectively, while top steelmaker POSCO Holdings fell 1.7 percent.

In contrast, bio-related shares advanced, with industry leader Samsung Biologics surging 5.03 percent after reporting record earnings in the previous session. Meanwhile, the local currency was trading at 1,438.15 won against the U.S. dollar at 11:20 a.m., down 0.55 won from the previous session.