South Korean stocks traded almost flat late Thursday morning as the currency's volatility continued to weigh down on investor sentiment, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.06 percent, or 1.2 points, to 1,937.39 as of 11:20 a.m.

Blue-chip exporters edged up, with market bellwether Samsung Electronics increasing 0.14 percent and top chipmaker SK hynix adding 1.43 percent. No. 1 carmaker Hyundai Motor moved up 0.25 percent.

Retailers lost ground, with Lotte Shopping declining 0.75 percent and discount store chain Emart dipping 3.04 percent. Daewoo International, a leading South Korean trading company, moved down 1.11 percent.

The local currency was trading hands at 1089.65 won to the greenback as of 11:20 a.m., down 1.55 won from Wednesday's close. (Yonhap News)