South Korean stocks traded higher late Monday morning after opening weaker on profit-taking amid hopes for the Federal Reserve's rate cuts next year.

The benchmark Korea Composite Stock Price Index (KOSPI) had gained 3.46 points, or 0.13 percent, to 2,567.02 as of 11:20 a.m.

Last week, the Fed kept its rates unchanged and hinted at possible cuts for 2024.

Blue chips traded mixed across the board, with tech behemoth Samsung Electronics down 0.14 percent, while No. 2 chipmaker SK hynix added 0.57 percent.

Leading steelmaker POSCO Holdings climbed 2.6 percent, and battery manufacturer LG Energy Solution rose 0.47 percent.

Top automaker Hyundai Motor, however, fell 1.04 percent, and SK Innovation tumbled 0.65 percent.

The local currency was trading at 1,299.15 won against the U.S. dollar, down 2.65 won from the previous session's close.

Source: Yonhap News Agency