Seoul shares turn positive;SK Tel, Networks rise

* KOSPI turns positive, gains 0.45 percent

* SK Telecom, SK Networks up after SK Telecom network
purchase

* Stronger won weighs on exporters

(Updates to mid-morning)

By Jungyoun Park

SEOUL, May 22 (Reuters) - Seoul shares turned positive on
Friday late morning trade helped by gains in SK Telecom
(017670.KS) and SK Networks (001740.KS) after the mobile carrier
said it would buy a broadband network from an affiliate, but
exporters fell.

The Korea Composite Stock Price Index (KOSPI) was up
0.45 percent at 1,428.05 as of 0209 GMT.

"Despite news overnight that Great Britain's credit rating
has been slashed, markets across Asia reacted to it fairly
calmly, which reassured investors and sustained foreign buying in
stocks," said Lee Sun-yeop, a market analyst at Goodmorning
Shinhan Securities.

"However, the latest batch of economic data came out to be
rather disappointing, which sort of flattened hopes that a
turnaround may be near," said Chung Seung-jae, a market analyst
at Mirae Asset Securities.

Both SK Telecom and SK Networks outperformed after South
Korea's top mobile carrier on Friday said it would buy a network
business for 892.9 billion won ($719.5 million) from the sister
company. [ID:nSEO65177]

The acquisition would save SK Telecom about 300 billion won
($241.7 million) in annual line-leasing costs, SK Telecom said in
a statement.

SK Telecom also said it would buy new shares in SK Broadband
(033630.KQ), which is offering new shares, expected to be worth
300 billion won.

SK Telecom was up 0.85 percent and SK Networks up 4.45
percent.

But shares in SK Broadband declined 3.83 percent.

"There had been expectations that the newly acquired network
assets would be invested in SK Broadband. Share prices are
falling due to disappointment," said Daniel Jin, an analyst at
Goodmorning Shinhan Securities.

Meanwhile the stronger won KRW= weighed on key technology
and car exporters.

Hynix Semiconductor (000660.KS), the world's No.2 memory
chipmaker, lost 2.6 percent. Hyundai Motor (005380.KS), South
Korea's top carmaker, fell 1.8 percent.

amsung Fine Chemicals (004000.KS) rallied, spiking 14.7
percent, as the maker of electronic materials and chemical
products was expected to benefit from the U.S. administration's
recent plans to raise car efficiency standards and regulate
emissions. [ID:nN19426946]

"Investors expect the company to be able to export lightweight plastic products for motor parts to the US market,"
said Sun Seung-soo, an analyst at Daewoo Securities. Using
lighter products will help carmakers meet the new U.S. rules.

(Editing by Chris Lewis)