Seoul: South Korean shares traded more than 2 percent lower late Friday morning, as big-cap tech shares mirrored overnight losses on Wall Street driven by concerns over an artificial intelligence bubble and employment data. The benchmark Korea Composite Stock Price Index (KOSPI) had tumbled 83.94 points, or 2.08 percent, to 3,942.51 as of 11:20 a.m.

According to Yonhap News Agency, major U.S. indexes saw declines amid renewed fears over the valuation of AI-related shares and data indicating a cooling labor market. The Dow Jones Industrial Average decreased by 0.84 percent, the Nasdaq composite fell by 1.9 percent, and the S and P 500 dropped by 1.12 percent. The latest report from Challenger, Gray and Christmas Inc. showed U.S. companies announced 153,074 job cuts last month, nearly tripling the figure from the same month last year.

In Seoul, blue-chip tech shares continued their downward trend. Samsung Electronics lost 1.51 percent, and SK hynix fell by 2.19 percent. Hyundai Motor, a leading carmaker, retreated by 2.6 percent, while Kia decreased by 2.05 percent. Major power plant builder Doosan Enerbility declined by 2.4 percent, and Hanwha Aerospace dropped by 5.46 percent. LG Energy Solution, a top battery maker, turned lower, declining by 1.49 percent.

Shipbuilding stocks also weakened, with HD Hyundai Heavy sliding 3.81 percent, Hanwha Ocean shedding 2.36 percent, and HD Korea Shipbuilding falling 2.51 percent. Electric equipment manufacturer HD Hyundai Electric plunged by 6.97 percent, and state-run Korea Electric Power retreated by 3.9 percent.

Financial shares, which initially started marginally higher, also turned lower. KB Financial fell 1.2 percent, and Shinhan Financial pulled back by 1.89 percent. The local currency was trading at 1,454.7 won against the U.S. dollar as of 11:20 a.m., sharply down by 7 won from the previous session.