South Korean stocks traded 0.6 percent higher late Wednesday morning, led by gains in steel and chemical shares.

The benchmark Korea Composite Stock Price Index added 1.87 points to 2,004.43 as of 11:20 a.m.

Foreigners and institutions scooped up local shares across the board prior to the ex-dividend date.

Steelmakers rallied on growing confidence in the U.S. and Chinese economies, with industry leader POSCO increasing 3.76 percent, and Hyundai Steel rising 5.89 percent.

Petrochemicals traded bullish as crude oil prices slightly recovered from a multi-year low.

Top refiner SK Innovation went up 1.49 percent, and Kumho Petrochemical gained 2.99 percent.

LG Chem, the nation's leading chemical and battery manufacturer, advanced 2.25 percent.

The local currency was changing hands at 1170.7 won against the greenback as of 11:20 a.m., up 2.6 won from Tuesday's close. (Yonhap)