South Korean shares fell sharply on Monday, with technology stocks leading losses as concerns over the pace and risks of artificial intelligence development weighed on investor sentiment. The South Korean won strengthened slightly against the dollar, while benchmark bond yields were mixed, Reuters reported.

The benchmark KOSPI was down 138.96 points, or 2.01%, to 6,770.95 as of 02:51 GMT. Despite Monday's decline, the index has gained 60.67% so far this year.

AI-related stocks came under pressure after Anthropic CEO Dario Amodei called for a slower pace of AI model development amid growing concerns over the potential misuse of the technology. Amodei outlined a three-step framework aimed at pacing development and allowing more time to address associated risks.

Chipmakers were among the biggest drags on the index. Samsung Electronics fell 2.12%, while SK Hynix declined 4.19%.

Other major index constituents also traded lower. Battery maker LG Energy Solution slipped 1.25%, while Hyundai Motor fell 2.75%. Kia Corp declined 1.90%. Steelmaker POSCO Holdings shed 2.54%.

Samsung BioLogics bucked the broader trend, rising 1.20%.

Market breadth remained weak, with 539 of the 913 traded stocks declining, compared with 332 that advanced. Foreign investors were net sellers of shares worth 2,284.8 billion won ($1.70 billion).

Read more: Global Market Today: Asian stocks retreat after AI warnings, oil advances

South Korea's main stock exchange, Korea Exchange, is set to introduce after-hours trading from 4 p.m. to 8 p.m. local time starting September 14. Reuters reported that the move follows the launch of evening trading by alternative trading system Nextrade in March 2025.

The extended trading window is expected to give investors additional flexibility to respond to developments after regular market hours.

Read more: Anthropic's AI warning may weigh on chips, but trade seen intact

Won strengthens; bond yields mixed

The won was quoted at 1,344.0 per dollar on the onshore settlement platform, up 0.01% from its previous close of 1,344.1. The currency has strengthened 7.1% against the dollar so far this year.

In the debt market, September futures on three-year Treasury bonds gained 0.01 point to 102.66.

The most liquid three-year Korean Treasury bond yield rose 1.8 basis points to 4.041%, while the benchmark 10-year yield declined 4.7 basis points to 4.524%.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)