Seoul shares rise; caution before rate decision

(Update to mid-morning)

By Jungyoun Park

SEOUL Oct 9 (Reuters) - Seoul shares rose on Friday after gains overnight on Wall Street and led by key tech issues like Samsung Electronics, but caution before the Bank of Korea's interest rate decision and comments capped gains.

"The consensus is a rate hike this time is highly unlikely, particularly given the lending rule changes announced yesterday," said Hwang Keum-dan, a market analyst at Samsung Securities.

South Korea's top financial regulator said on Thursday that it would limit mortgage lending by insurance firms and other non-banking institutions in the capital Seoul and surrounding areas. [ID:nSEO366481]

As of 0044 GMT, the Korea Composite Stock Price Index .KS11 (KOSPI) was up 0.96 percent at 1,630.95 points.

Key technology issues led gains, with Samsung Electronics (005930.KS), the world's No.1 memory chip maker, rising 2.5 percent while Hynix Semiconductor (000660.KS) advanced 2.33 percent.

Banks also rose, with Shinhan Financial Group (055550.KS) going up 2.8 percent and KB Financial Group (105560.KS) rising 0.83 percent.

Shares in Tong Yang Life (082640.KS) gained 9.54 percent to 15,500 won after falling significantly below its IPO pricing of 17,000 won on the first day of trading on Thursday.

(Editing by Jonathan Hopfner)