South Korean stocks traded lower late Tuesday morning as investors took a wait-and-see stance on the geopolitical tension on the Korean Peninsula sparked by Pyonyang's nuke provocations.

The benchmark Korea Composite Stock Price Index shed 3.11 points, or 0.13 percent, to 2,326.54 as of 11:20 a.m.

Financial shares lost ground, with Shinhan Financial moving down 2.95 percent and Samsung Life Insurance dropping 0.89 percent. KB Financial plunged 4.08 percent.
 
Top carmaker Hyundai Motor lost 0.71 percent, and its sister Kia Motors shed 1.29 percent.

Tech shares traded higher, with Samsung Electronics moving up 1.48 percent and chipmaker SK hynix advancing 2.35 percent. LG Display gained 5.12 percent.

The local currency was trading at 1,131.40 won against the US dollar, down 1.60 won from the previous session's close. (Yonhap)