Seoul shares end firm helped by LG Elec, Display

* KOSPI trades firm, up 0.55 pct

* Shares face resistance as index hits new 2009 high

* LG Display, LG Elec lead gains

(Updates to close)

By Jungyoun Park

SEOUL, July 17 (Reuters) - Seoul shares rose on Friday as
positive U.S. and domestic earnings news boosted sentiment, with
gains fueled by technology issues such as LG Display (034220.KS)
and LG Electronics (066570.KS).

The Korea Composite Stock Price Index (KOSPI)
finished up 0.55 percent at 1,440.10 points, after hitting
1,445.60 points, the highest intraday level seen so far this
year.

"Shares are trading firm, continuing their upward trend on
the back of the latest set of strong earnings from both the
United States and South Korea," said Won Jong-hyuck, a market
analyst at SK Securities.

"But since the index has neared its earlier year's high, and
key bank earnings from Wall Street are due tonight, investors are
acting more cautiously," Won added.

Shares in LG Display rose 2.3 percent after the world's No. 2
maker of liquid crystal display (LCD) screens returned to a
quarterly profit after two straight losing quarters, spurred by
robust demand for flat-screen TVs that is expected to power the
industry through most of the year. [ID:nSP56216]

LG Display expects the LCD industry to face an oversupply
situation between late this year and early 2010, but its CEO said
the impact could be limited due to glass shortages and possible
output cuts by makers.[ID:nSEO292164]

Shares in LG Electronics, a handset and consumer electronics
maker and the biggest shareholder of LG Display, ended up 3.66
percent boosted by LG Display's surprisingly good earnings.

"LG Electronics, as LG Display's major shareholder, would
benefit from LG Display's strong earnings," said Steve Lee, an
analyst at Goodmorning Shinhan Securities.

Lee also added that difficulties experienced ts rivals such
as Nokia (NOK1V.HE) highlighted LG Electronics' strengthening
global competitiveness.

The world's top cellphone maker, Nokia cut its profitability
and market share forecasts citing tough competition at the top
end of the market. [ID:nLG204714]

POSCO (005490.KS) ended nearly flat, up 0.11 percent,
following three consecutive gaining sessions and after news the
world's No.6 steelmaker would buy a 90 percent stake in a
Vietnamese stainless steel processing company as it seeks to
secure a stable customer base for its stainless steel business.
[ID:nSEO313741]

POSCO had also said it would pay an interim dividend of 1,500
won ($1.19) per share. [ID:nSEL000696]

Elsewhere shares in heavy machinery maker Doosan Infracore
(042670.KS) retreated 2.51 percent as investors grew wary about a
sales recovery.

"Recent momentum for the company was on excavator sales in
China, boosted by the country's economic stimulus policy, but
that will hardly bring fundamental improvements in its overall
business," said analyst Lee Ji-hoon of SK Securities.

"Machinery sales are expected to fall globally in the latter
half the year," Lee added.