South Korean stocks traded lower late Friday morning due mainly to financial uncertainties from the United States, analysts said, while North Korea's instability had a limited impact.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 10.55 points, or 0.54 percent, to 1,957.38 as of 11:20 a.m.

Shares lost ground across the board, with tech giant Samsung Electronics falling 1.06 percent and top steelmaker POSCO losing 0.76 percent. Leading chipmaker SK hynix moved down 0.82 percent.

Concerns of instability in North Korea from the surprise execution of leader Kim Jong-un's once-powerful uncle did not lead to market volatility, analysts said.

The local currency was trading at 1,053.50 won to the U.S. dollar as of 11:20 a.m., down 2.50 won from Thursday's close. (Yonhap News)