UPDATE 1-Hynix seeking up to $675 mln funding-source

(Adds minister comments and other details)

By Rhee So-eui

SEOUL Dec 5 (Reuters) - Hynix Semiconductor Inc (000660.KS) has asked its shareholders for 500 billion to 1 trillion won ($338 million-$675 million) worth of fresh funding, a shareholder source close to the matter said on Friday.

Hynix shares, whose shares lost 72 percent this year to Thursday, jumped 4.4 percent by 0342 GMT, leading the wider market's .KS11 2.2 percent rise on hopes for a bailout.

Major shareholders are discussing whether and how to provide funds to loss-making Hynix, the world's second-biggest computer memory chip maker, said the source, who declined to be named.

"Nothing has been decided as to the funding method, size and timing," the source said.

The news adds to the spreading gloom in the memory chip industry which was been mauled by a prolonged slump and rapidly weakening consumer demand amid the global downturn.

Japan's Toshiba Corp (6502.T), No. 2 NAND flash memory maker, would halt chip production at two plants for nine days due to weak demand, NHK reported on Friday. [ID:nT345231]

Dynamic random access memory (DRAM) makers in Taiwan are also calling for government support as they struggle to get financing to stay afloat in the brutal market downturn.

Earlier on Friday, South Korean economy minister, Lee Youn-ho was quoted by Yonhap News as saying local shareholders were "positively" considering supporting Hynix.

Hynix has previously said it was considering options to raise cash, including taking loans and selling old production facilities.

The company reported a 1.65 trillion won ($1.11 billion) net loss in July-September, its worst quarterly result in nearly eight years. It has cash and cash equivalents worth 1.23 trillion won at end-September.

"Shareholders will study a solution for Hynix, and the government could come up with an alternative if there's a problem," Lee said.

The top shareholders of Hynix are former creditors that bailed out the South Korean chip maker during the industry's last major downturn in 2000-2001. Korea Exchange Bank (004940.KS), which leads the creditor group, said no decision was made about a support plan. ($1=1481.0 Won) (Reporting by Rhee So-eui; Editing By Keiron Henderson)