Seoul: South Korean shares opened nearly 1 percent lower, tracking overnight losses on Wall Street sparked by concerns over an artificial intelligence bubble and jobs. The benchmark Korea Composite Stock Price Index (KOSPI) shed 39.52 points, or 0.98 percent, to 3,986.93 in the first 15 minutes of trading.

According to Yonhap News Agency, major U.S. indexes closed lower amid revived fears over the stretched valuation of AI-related shares and data indicating a cooling labor market. The Dow Jones Industrial Average fell 0.84 percent, the tech-heavy Nasdaq composite dipped 1.9 percent, and the S and P 500 decreased by 1.12 percent.

The latest data from Challenger, Gray and Christmas Inc. revealed that U.S. companies announced 153,074 job cuts last month, marking almost a threefold increase from the same month last year.

In Seoul, most big-cap stocks started in negative territory. Market bellwether Samsung Electronics lost 0.2 percent, and its chipmaking rival SK hynix dipped 1.35 percent. Leading carmaker Hyundai Motor retreated 1.49 percent, and its sister company Kia dropped 1.16 percent.

Major power plant builder Doosan Enerbility experienced a decline of 1.89 percent, while defense giant Hanwha Aerospace slid 3.92 percent. Shipbuilders also showed weakness, with HD Hyundai Heavy down 1.9 percent, Hanwha Ocean shedding 1.63 percent, and HD Korea Shipbuilding decreasing by 1.55 percent. Electric equipment manufacturer HD Hyundai Electric plunged 4.11 percent.

Financial shares were among the few gainers, with KB Financial rising 0.72 percent and Shinhan Financial gaining 0.38 percent. Top battery maker LG Energy Solution also added 0.32 percent.

The local currency was trading at 1,449.3 won against the U.S. dollar as of 9:15 a.m., down 1.6 won from the previous session.