South Korean shares ticked down late Monday morning on a risk-off mood following the failure of Italy's referendum on constitutional reform.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 1.76 points, or 0.09 percent, to 1,969.85 as of 11:20 a.m.

The KOSPI opened lower but it pared some losses as foreigners and institutions turned to net-buyers. Individuals offloaded shares.

The global financial market has paid keen attention to political turmoil in Italy. Concern is widespread about growing uncertainties and the possibility of a deeper economic crisis, as Prime Minister Matteo Renzi announced his resignation to take responsibility for the defeat in the referendum.

Some say Italy may even exit the eurozone.

Swings in the global market, however, appear to be limited by expectations of the outcome of the European Central Bank (ECB)'s monthly meeting slated for Thursday.

"A wait-and-see attitude may spread on the mixture of Italy's political uncertainties and the ECB's active response," Lee Hyun-joo, an analyst at NH Investment & Securities, said. "The KOSPI is expected to remain in a tight range this week as well."

On the Seoul bourse, large caps traded mixed.

Market bellwether Samsung Electronics dropped 0.58 percent, while global chipmaker SK hynix was flat.

Leading automaker Hyundai Motor climbed 0.75 percent and state-run Korea Electric Power Corp. lost 0.58 percent.

AmorePacific, the top cosmetics maker, gained 1.46 percent.

The local currency was trading at 1,174.90 won against the US dollar, down 2.30 won from the previous session's close. (Yonhap)