Seoul shares rise; autos, energy issues rally

* KOSPI ends 1.4 pct higher

* Autos up, boosted by May sales data

* Energy issues rally on crude price hike

(Updates to close)

By Jungyoun Park

SEOUL, June 1 (Reuters) - Seoul shares rose on Monday, with
auto issues rallying on solid May sales data and helped by news
General Motors (GM.N) would file for bankruptcy protection, while
higher oil prices lifted energy stocks.

The Korea Composite Stock Price Index .KS11 (KOSPI)
finished up 1.38 percent at 1,415.10 points.

"Shares bounced following sluggish trade lately, helped by
the latest batch of data stoking hopes for the world economy,
including China's manufacturing index," said Lee Jin-woo, a
market analyst at Mirae Asset Securities.

The Chinese manufacturing sector continued to expand
moderately in May as new export orders improved, two surveys
showed on Monday. [ID:nPEK17043]

Also the U.S. economy shrank slightly less in the first
quarter than initially estimated.[ID:nN29399341]

"Foreign investors' continued buying is also reassuring. On
the back of the weakening dollar, Asian shares are attracting
interest," Lee added.

Foreign investors were net buyers of 325.9 billion won
($260.5 million), posting their 12th consecutive session of
buying, the longest such streak since July, 2005.

Automakers continued trading firm after news that General
Motors would file for bankruptcy protection, with Hyundai Motor
(005380.KS) rising 3.75 percent and Kia Motors (000270.KS)
gaining 2.09 percent.

"GM's bankruptcy has widely been expected for some time, so
this will hardly come as a surprise to market participants," said
So Jang-ho, a market analyst at Samsung Securities.

"In the short-term, there might be sectoral disorder as a
giant U.S. auto player falls. But in the longer-term, South
Korean automakers will likely be helped by this as it offers an
opportunity to increase market share," So added.

Sentiment towards the sector was boosted by solid May sales,
helped by government support plans.

Hyundai Motor's domestic sales last month rose 15.4 percent
from a year ago, while Kia Motors' grew 44 percent, Korea
Exchange filings showed.

Shares in KT Corp (030200.KS), which absorbed its mobile unit
KTF on Monday, jumped 6.03 percent after the company said it is
aiming to boost the merged company's operating profit by 44
percent in the next three years by revamping service offerings
and going after new business. [ID:nSEO121780]

Energy issues advanced on crude prices' CLc1 recent robust
gains amid hopes for higher demand as economies stabilise.

SK Energy (096770.KS) climbed 4.25 percent and GS Holdings
(078930.KS), the holding company of GS Caltex, ended up 2.73
percent.

Baking issues rose helped by strength in the won currency
KRW=, which should ease the burden of their foreign currency
debts.

KB Financial Group (105560.KS) climbed 6.63 percent and Woori
Finance Holdings (053000.KS) finished up 6.33 percent.
($1=1251.1 Won)