Seoul shares jumped nearly two percent on Monday, led by semiconductor stocks, as concerns about the overvaluation of artificial intelligence(AI) eased.

The benchmark Korea Composite Stock Price Index rose 77-point-68 points, or one-point-94 percent to close at four-thousand-89-point-25.

The main bourse held its gains with foreign investors buying a net 518-point-18 billion won in shares.

Tech stocks led gains on news that Samsung Electronics had hiked the prices of its memory chips, mitigating some fears of an AI bubble.

Nvidia's upcoming earnings report, expected to exceed forecasts, will likely influence the semiconductor sector.

In Seoul, most large-cap shares were winners.

Samsung Electronics gained three-point-five percent, while SK hynix surged eight-point-21 percent.

Shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean climbed two-point-nine percent and one-point-39 percent, respectively.

Defense giant Hanwha Aerospace jumped two-point-51 percent.

The tech-heavy KOSDAQ gained four-point-77 points, or zero-point-53 percent, to close at 902-point-67.

The South Korean won weakened against the U.S. dollar by one won, trading at one-thousand-458 won as of 3:30 p.m.