Seoul shares rise; techs, steel issues outperform

* KOSPI rises 0.47 pct

* Banks fall after restructuring list is announced

* Steelmakers rise after Japan iron ore deal news

(Updates to mid-morning)

By Jungyoun Park

SEOUL, June 12 (Reuters) - Seoul shares rose on Friday after
overnight gains on Wall Street, with a set of solid U.S. economic
data boosting sentiment, while key exporters including Samsung
Electronics (005930.KS) gained on the back of brewing earnings
hopes.

The Korea Composite Stock Price Index (KOSPI) was up
0.47 percent at 1,426.12 points as of 0121 GMT.

"Positive data and share gains in the United States are
helping Seoul shares as well," said Kim Seung-han, a market
analyst at HI Investment Securities.

U.S. retail sales rose in May for the first time in three
months and the number of workers filing new claims for jobless
benefits last week hit a January low, fostering hopes the
recession was abating. [ID:nN11493029]

Foreign investors were net buyers of 138.8 billion won
($110.7 million) worth of shares, purchasing for a sixth session
as of 0145 GMT. Foreign investors bought a net 706 billion won
worth of shares in the previous session, the biggest buying
amount since early October 2007, according to the Korea Exchange.

Gains were led by key technology issues on the back of
brewing earnings hopes, with a local media report on potential
earnings surprises by LG Electronics (066570.KS) boosting the
company's shares.

"Earnings consensus on both LG Electronics is being upgraded.
Consensus on second-quarter operating profit on LG Electronics is
nearing 800 billion won now," said Goodmorning Shinhan Securities
analyst Steve Lee.

LG Electronics, the world's No.3 mobile handset maker, was up
2.5 percent.

Steelmakers continued rising, helped further by news that
Japan's Nippon Steel (5401.T) and JFE (5411.T) have agreed with
BHP Billiton (BHP.AX) to cut fine iron ore prices by 33 percent,
matching a benchmark deal reached with Rio Tinto (RIO.AX).
[ID:nSP476761]

POSCO (005490.KS), the world's No.4 steelmaker, was up 2.63
percent and Dongkuk Steel (001230.KS) rose 4.52 percent.

Meanwhile, banks fell after news late on Thursday that South
Korean banks have chosen 33 companies for restructuring. Banks
may need to put aside a combined 830 billion won in additional
provisioning charges to cover their exposure to the 33 companies,
South Korea's top financial regulator said.

"Such announcements by the financial regulator does not come
as a surprise, although shares are retreating. The provisioning
costs also came in line with expectations," said Lee Hyeok-jae,
an analyst at IBK Securities.

KB Financial Group (105560.KS), the holding company for South
Korea's top commercial lender Kookmin Bank, fell 0.47 percent.

Shinhan Financial Group (055550.KS) fell 0.49 percent,
further weighed by news a regulator called on Shinhan Bank, the
group's commercial banking unit, to set aside an additional
provisioning charge against currency option contracts, which may
be reflected in the current quarter. [ID:nSEO277434]

(Editing by Chris Lewis)