Seoul shares firm as shipbuilders rise; banks fall

* KOSPI rises 0.14 pct

* Banks fall on new share issuance reports

* Shipbuilders rise on brewing order hopes

(Updates to close)

By Jungyoun Park

SEOUL, June 3 (Reuters) - Seoul shares ended firmer on
Wednesday, led by shipbuilders including Samsung Heavy Industries
(010140.KS) on rising order hopes, but losses by banks such as KB
Financial Group (105560.KS) after capital-raising reports
weighed.

The Korea Composite Stock Price Index (KOSPI)
finished up 0.14 percent or 2.04 points at 1,414.89.

"Scepticism is growing in markets about consumption in
developed markets, as investors are starting to wonder whether
government support-led momentum in consumption would near an
end," said Y.S.Rhoo, a market analyst at Hyundai Securities.

Foreign investors were buyers of a net 123.9 billion won
($99.97 million) for a 14th consecutive session, the longest
buying streak since April 2004.

Meanwhile, news that North Korea is assembling a missile that
could hit U.S. soil and may attempt a test launch as early as
this month had limited impact on shares. [ID:nSEO251521]

"Yes, North Korea's actions cause worries, but investors do
not think they are detrimental. Most think their latest actions
have something to do with strengthening Kim's heir," Rhoo added.

A senior U.S. official in Washington said Kim Jong-il
appeared to have set up Kim Jong-un as his official heir.

Shipbuilders rallied on strengthening order hopes, with
Samsung Heavy Industries (010140.KS) leading gains amid
expectations that it may win an order for a liquified natural gas
(LNG) storage facility from Royal Dutch Shell (RDSa.L).

A Samsung Heavy spokesman confirmed that the company had
participated in bidding for a Royal Dutch Shell project, but said
no decisions had been made, with the result scheduled to come out
in July.

Hyundai Heavy Industries (009540.KS) and Daewoo Shipbuilding
& Marine Engineering (042660.KS) are also said to have
participated in bidding.

Samsung Heavy ended up 7.05 percent and Hyundai Heavy
Industries rose 4.16 percent. Daewoo Shipbuilding closed up 2.92
percent.

But banks fell following reports of new share issuance plans.

KB Financial Group (105560.KS) fell 1.51 percent after news
its commercial banking unit, Kookmin Bank, on Wednesday said it
might sell new shares to raise capital. [ID:nSEO249141]

Woori Finance Holdings (053000.KS) fell 5.7 percent on a
newspaper report that it was moving to raise capital in a new
share sale, although the group denied the report.[ID:nSEL000642]

But Korea Exchange Bank (004940.KS) rose 2.88 percent,
underpinned by speculation that KB Financial may be interested in
buying a stake in the lender.

Elsewhere, Doosan Infracore (042670.KS) ended down 2.49
percent giving up earlier gains. It had risen as much as 3.9
percent after it said it planned to sell stakes in unlisted
Doosan DST for 400 billion won and Korea Aerospace Industries
(KAI) for 190 billion won. [ID:nSEO251875]
($1=1239.3 WON)