Seoul shares end up; autos, Daewoo Eng fall

* KOSPI rises 0.12 pct, positive domestic data helps

* Daewoo Engineering falls as investors reap quick profits

* Taihan Electric Wire rallies on hopes on European arm

(Updates close)

By Jungyoun Park

SEOUL, June 30 (Reuters) - Seoul shares ended higher on
Tuesday with a set of domestic data helping sentiment, but the
index was tempered by declines in Daewoo Engineering (047040.KS)
and in automakers facing strikes.

The Korea Composite Stock Price Index .KS11 (KOSPI)
finished up 0.12 percent at 1,390.07 points.

"Program buying lifted broader markets a bit, and
institutional buying ahead of the end of first half on
window-dressing efforts also helped," said Kwak Joong-bo, a
market analyst at Hana Daetoo Securities.

Foreign investors were buyers of a net 4.6 billion won
($3.60 million), picking up Seoul stocks for a fourth
consecutive session.

Sentiment was helped by a batch of data showing that Asia's
fourth-largest economy was stabilising.

South Korean manufacturers' assessment of the business
outlook for July rose for a fourth straight month to a 13-month
high, data showed on Tuesday, indicating the economy was
approaching a turnaround. [ID:nSEO303763]

South Korea's industrial output rose a seasonally adjusted
1.6 percent in May from April, data showed on Tuesday, marking
the fifth consecutive month of gains, and stoking economic
recovery hopes. [ID:nSEV000740]

Markets were fueled by banks, as they rose with KB Financial
Group (105560.KS) finishing up 1.3 percent and Hana Financial
Group (086790.KS) surging 1.86 percent.

"Banking issues are riding on window-dressing effects as
institutions are moving in to snap up key sectoral shares,
including financials, as the end of first half is imminent,"
said Yoon Chang-bae, an analyst at Hyundai Securities.

"Some investors are also betting on improvements in their
performances by the third quarter," Yoon added.

But auto issues declined on workers' strike concerns.

Kia Motors Corp (000270.KS), South Korea's second-biggest
carmaker, fell 3.82 percent as the company labour union approved
a plan for partial strikes as wage talks stalled.

In a statement, Kia's union said 66 percent of its 30,300
members had voted in favor of the protest plan. Union members
are set to stage two-hour strikes per shift starting on Tuesday,
according to Yonhap News.

Ssangyong Motor Co (003620.KS) also tumbled 15 percent as a
unionised workers' strike that started on May 21 continued.

The newspaper Hankyoreh on Monday said the South Korean
carmaker could face bankruptcy even before submitting its
business normalisation plan to the court, quoting the
court-appointed administrators.

"Ssangyong Motor's estimated value on the recovery has been
lowered as its operation has slowed down," said Lee Sang-hyun,
an analyst at Hana Daetoo Securities.

"The government rescue measures would be the only hope since
the management-workers talk is heading toward a collapse," Lee
added.

Meanwhile, Taihan Electric Wire Co Ltd (001440.KS) jumped
more than 7 percent after a report said Italian cable maker
Prysmian (PRY.MI) was in talks to take over Draka Holding NV
DRAK.AS, Europe's third-largest cable maker based in the
Netherlands. [ID:nLT606499]

Taihan Elec Wire's investment arm, Taihan Global Luxembourg
Investment Sarl, controls 9.9 percent of Prysmian.

"There are hopes that Taihan would benefit from Prysmian's
business," said Kim Ji-san, an analyst at Kiwoon Securities.

Meanwhile Daewoo Engineering & Construction (047040.KS)
tumbled 6.2 percent after its shares jumped in the previous
session on news its cash-strapped controlling shareholder, Kumho
Asiana Group, was looking to sell its stake in the South Korean
builder.

Citigroup downgraded Daewoo Engineering & Construction
(047040.KS) to "sell", saying share prices have overshot the
mark.

"We think [Kumho Asiana's Daewoo Engineering stake sale] is
a short-term positive share price catalyst," Citigroup said in a
report dated June 29, adding, "There are no fundamental changes
even though it is being resold to the market."