South Korean stocks traded 0.47 percent lower late Tuesday morning, with losses in securities and engineering weighing down on the index.

The benchmark Korea Composite Stock Price Index lost 9.22 points to 1,972.35 as of 11:20 a.m.

Securities shares traded bearish as investors weighed the outlook for future interest rates in the United States.

Samsung Securities shed 1.96 percent, and NH Investment & Securities declined 1.84 percent.

Korea Aerospace Industries, South Korea's sole aircraft maker, rose 3.08 percent following a sharp loss in the previous session over a deadly jet trainer crash in Indonesia on Sunday. The cause of the crash is currently under investigation.

The local currency was changing hands at 1,176.8 won against the greenback as of 11:20 a.m., up 0.8 won from Monday's close. (Yonhap)