South Korean shares edged down late Monday morning as institutional traders offloaded stocks amid a risk-off sentiment.

The benchmark Korea Composite Stock Price Index shed 2.34 points, or 0.12 percent, to 2,020.32 as of 11:20 a.m.

Institutions were net sellers, while foreigners and individuals net-purchased shares.

Starting the week, in particular, investors' appetite for less risky assets appeared to be growing amid unrelenting uncertainties at home and abroad, market watchers said.

Concerns persist about the possibility of a "hard Brexit," a slowdown in the Chinese economy, and geopolitical risks.

The US is widely expected to jack up its policy interest rates within this year.

Analysts cited the possible impact from recent consumer price rises in the US and other major economies.

"Rather than raising hopes of an economic recovery, it is expected to undermine expectations on global (monetary) policy and liquidity," Lee Kyung-min, a researcher at Daishin Securities, warned.

Top cap Samsung Electronics shed 0.51 percent, while the state-run Korea Electric Power Corp. gained 2.33 percent.

Front-running automaker Hyundai Motor advanced 0.75 percent and its smaller affiliate Kia Motors climbed 0.73 percent.

The local currency was trading at 1,142.00 won against the US dollar, down 9.40 won from the previous session's close. (Yonhap)