Seoul shares end higher led by techs, shipbuilders

* KOSPI advances 0.80 percent

* Technology plays rise, eyes on LG Display before earnings

* Shipbuilders, construction issues rally

(Updates to close)

By Jungyoun Park

SEOUL, July 16 (Reuters) - Seoul shares rose on Thursday led
by technology issues and shipbuilders including Samsung
Electronics (005930.KS) and Hyundai Heavy Industries (009540.KS),
fueled by robust foreign buying.

The Korea Composite Stock Price Index (KOSPI)
finished up 0.80 percent at 1,432.22 points.

"Recent domestic and U.S. earnings have boosted sentiment,
prompting solid foreign buying in key blue chips such as Samsung
Electronics, Hynix (000660.KS), POSCO (005490.KS) and Shinhan
Financial Group (055550.KS)," said Ham Sung-sik, a market analyst
at Daishin Securities.

Foreign investors were buyers of a net 518.2 billion won
($409.3 million) worth of shares.

"But shares faced some pressure at the index neared the
year's earlier high...boxed-range movement is likely until we
have a clearer pictures of corporate earnings," said Kwak
Joong-bo, a market analyst at Hana Daetoo Securities.

Sentiment was further helped by news that U.S. credit card
companies saw defaults and delinquencies in June below analysts
expectations, and June industrial production data that indicated
the recession might be loosening its grip. [ID:nN15343757]
[ID:nN15329440]

Flat-screen maker LG Display (034220.KS) closed up 0.87 just
before it reported positive second quarter earnings. It also said
late on Wednesday it plans a $2.55 billion production line,
boosting its capacity to meet growing demand for liquid crystal
display (LCD) televisions. [ID:nSEO62379]

The world's No. 2 maker of liquid crystal display (LCD)
screens, used in television sets, posted on Thursday a 302
billion won ($238.5 million) net profit in the second quarter,
much larger than a forecast of 161 billion won. [ID:nSP56216]

"While the news of it constructing an additional production
line may prompt some oversupply worries, it's definitely positive
for the longer term," said John So, an analyst at Goodmorning
Shinhan Securities.

Shares in GS Engineering & Construction (006360.KS) rose 4.49
percent after news a consortium of GS E&C and Petrofac (PFC.L)
won a $2.1 billion natural gas facility order from state-owned
Abu Dhabi Industries Ltd (Gasco). [ID:nLF649614]

Shipbuilders rallied on hopes the industry had hit bottom in
the second quarter and that demand for new vessels may revive
amid the latest signs economies are stabilising.

Daewoo Securities said in a note on Thursday that a sectoral
turnaround was expected in the third quarter, adding that
companies with strong offshore plants were recommended.

"Falls in steel prices will also be reflected in second
quarter earnings, and this is expected to help shipbuilders'
profitability," Daewoo Securities said.

Hyundai Heavy Industries, the world's largest shipbuilder,
rose 4.95 percent and Samsung Heavy Industries (010140.KS)
advanced 9.51 percent.

Some banks rode higher, helped by positive earnings news from
Goldman Sachs (GS.N).

KB Financial Group (105560.KS) climbed 1.53 percent, and
Shinhan Financial Group rose 3.08 percent.

($1=1266.1 Won)