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South Korean stocks traded sharply lower on late Monday morning as investors remained cautious amid renewed concerns over the fragile US-Iran ceasefire and rising oil prices, with tech shares leading losses.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 170.78 points, or 2.03 percent, to 8,240.43 as of 11:20 a.m., after opening 0.91 percent lower, reports Yonhap news agency.

Oil prices climbed after the United States and Iran exchanged fresh strikes over the weekend, raising renewed concerns over energy supplies and shipping traffic through the Strait of Hormuz.

The two sides agreed to halt recent hostilities in the Gulf and renew talks, according to reports.

On Friday, the S&P 500 slipped 0.05 percent and the Nasdaq composite declined 0.24 percent, while the Dow Jones Industrial Average fell 0.09 percent.

Investors also remained on the sidelines ahead of the expected announcement of major long-term investment plans by chip giants Samsung Electronics and SK hynix at a meeting chaired by President Lee Jae Myung later in the day.

Market bellwether Samsung Electronics fell 5.15 percent, and chip giant SK hynix retreated 3.29 percent.

Artificial intelligence investment firm SK Square sank 7.62 percent, while battery maker LG Energy Solution jumped 14.18 percent.

The Korean won was trading at 1,542.65 won against the U.S. dollar.

Meanwhile, the finance ministry said on Monday it will issue 160 billion won ($104 million) in government bonds for individuals next month.

The Treasury sale for retail investors is part of the ministry's plan to sell 2 trillion won in government bonds for individuals this year.

Last year, the ministry sold a total of 1.2 trillion won worth of Treasuries for retail investors.

The ministry said it will start issuing new three-year bonds for retail investors in April amid rising demand for short-term bonds.

The move is aimed at reducing the holding burden for investors and diversifying investment options, ministry officials said.