An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Tuesday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Tuesday. (Yonhap)

South Korean stocks tumbled by more than 2 percent Tuesday, weighed down by lingering concerns over the artificial intelligence sector, while investors wait for key US economic data. The local currency fell against the greenback.

The benchmark Korea Composite Stock Price Index fell 91.46 points, or 2.24 percent, to close at 3,999.13. It marks the first time in more than a week that the KOSPI has dropped below the 4,000 mark.

Trade volume was moderate at 368.6 million shares worth 16.3 trillion won ($11.1 billion). Losers outnumbered winners 713 to 184.

Foreigners and institutional investors were net sellers, offloading 1.03 trillion won and 223.4 billion won, respectively. Retail investors snapped up a net 1.3 trillion won.

"A downgrade in investment outlook for some big tech companies, coupled with persisting woes over the AI sector's profitability, have increased market volatility," Lee Kyoung-min, an analyst at Daishin Securities, said.

Investors are also maintaining a wait-and-see stance ahead of the release of the nonfarm payroll data for November in the United States on Tuesday (local time), Lee added.

In Seoul, large-cap shares finished lower across the board.

Market top-cap Samsung Electronics fell 1.91 percent to 102,800 won, and its chipmaking rival SK hynix retreated 4.33 percent to 530,000 won.

Battery maker LG Energy Solution dipped 5.54 percent, top carmaker Hyundai Motor slid 2.56 percent, and KB Financial Group inched down 0.96 percent.

In contrast, consumer goods gathered ground, as investors turned to defensive shares to hedge market volatilities stemming from AI.

Tobacco maker KT&G advanced 4.9 percent to 150,000 won, telecommunications provider KT rose 2.65 percent to 54,200 won, and ramyeon maker Samyang Foods added 1.06 percent to 1,243,000 won.

The Korean won was quoted at 1,477 won at 3:30 p.m., down 6 won from the previous session's close. (Yonhap)