REFILE-Seoul shares rise on shipbuilders, LG Display

* KOSPI rebounds, up 1.3 pct on foreign buying

* Shipbuilders rise on order report

* LG Display, Innotek both up on LCD module report

(Refiles to remove erroneous trash line)

By Jungyoun Park

SEOUL, Oct 7 (Reuters) - Seoul shares rose on Wednesday on renewed foreign buying, with shipbuilders including Daewoo Shipbuilding & Marine Engineering (042660.KS) advancing after an order report, while energy issues rose on oil's gains.

As of 0121 GMT, the Korea Composite Stock Price Index .KS11 (KOSPI) was up 1.29 percent at 1,619.04 points.

"News of Australia's rate rise, which prompted concerns that South Korea may be the next to raise its interest rate, was received favorably in the U.S. market. It has been re-interpreted as a sign that the economy is picking up," said Lee Kyoung-su, a market analyst at Taurus Investment & Securities.

Foreign investors turned net buyers after eight consecutive selling sessions, picking up a net 74.7 billion won worth of stocks.

Shipbuilders rose, helped by reports that Brazil's Vale (VALE.N) has expressed an intention to order ships worth $1 billion from Daewoo Shipbuilding & Marine Engineering (042660.KS) and STX Offshore & Shipbuilding (067250.KS).

STX Offshore rose 1.71 percent and Daewoo Shipbuilding was up 3.74 percent.

LG Display (034220.KS) rose 3.11 percent and LG Innotek (011070.KS) gained 2.62 percent amid market talk that LG Innotek may sell its LCD module business to the flat panel maker.

The Korea Exchange on Wednesday has asked both companies to clarify the rumour.

"The news is positive for both companies, but probably more so for LG Innotek, which may focus on its light emitting diode business," said Moon Hyun-shik, an analyst at Meritz Securities.

Gains in the price of oil CLc1 amid strengthening economic hopes lifted energy issues such as SK Energy (096770.KS).

SK Energy, which is South Korea's top crude refiner, rose further, helped by a Nomura report that it is reviewing changing SK Energy's target price pending the assessment of upside potential from the battery business.

GS Holdings (078930.KS), the holding company of South Korea's No.2 crude refiner, rose 1.53 percent and SK Energy advanced 2.43 percent. (Editing by Chris Lewis)