Seoul shares down led by banks, Daewoo Ship rises

* KOSPI down 0.69 pct

* Banks fall with U.S. peers on Goldman Sachs' share offering

* Daewoo Shipbuilding, International up on KAMCO's comments
(Updates to mid-morning)

By Jungyoun Park

SEOUL, April 15 (Reuters) - Seoul shares fell on Wednesday
following losses on Wall Street sparked by weak retail sales
data, with banks leading the decline, but Daewoo Shipbuilding
(042660.KS) outperformed on news regarding a planned stake sale.

The Korea Composite Stock Price Index (KOSPI) was
down 0.69 percent at 1,333.40 as of 0219 GMT.

"The main index had risen for five consecutive weeks and
institutions are moving to book in profits, moves of which
accelerated today after falls in U.S. stocks after weak retail
sale data," said Kim Joon-kie, a market analyst at SK Securities.

"Shares have been rising on expectation about the broader
economy, so fresh weakness in retail data weakened sentiment.
Investors are being more cautious, wanting to confirm quarterly
results and outlook comments before making investment decisions,"
Kim said, adding that the won's KRW= relative stabilisation had
curbed foreign investor appetite in South Korean shares as well.

Foreigners were sellers of a net 54.4 billion won, and
institutions sold a net 54.36 billion won as of 0217 GMT.

Analysts expected limited impact from news North Korea had
ordered U.N. inspectors to leave on Tuesday after saying it would
quit international nuclear disarmament talks and restart a plant
that makes bomb-grade plutonium. [ID:nSP497987]

"North Korean has more political implications than economic
implications. I do not think investors will pay much attention to
it," said Kim Se-jung, a market analyst at Shinyoung Securities.

Banks led declines after their U.S. peers dropped on news of
Goldman Sachs' (GS.N) share offering, sending the S&P financial
index .GSPF 7.68 percent lower.

KB Financial Group (105560.KS) was down 3.18 percent and Hana
Financial Group (086790.KS) declined 3.38 percent.

Meanwhile, Daewoo Shipbuilding and Marine Engineering
(042660.KS) and Daewoo International Corp (047050.KS)
outperformed against the benchmark after Korea Asset Management
Corp (KAMCO) said on Tuesday that it would consider later this
year the timing for a sale of its stake in the firms.
[ID:nSEO91082]

KAMCO owns 19.1 percent of Daewoo Shipyard, the world's No.3
shipbuilder, and 35.5 percent of Daewoo International, an energy
developing firm.

Daewoo Shipbuilding was up 1.58 percent and Daewoo
International was up 4.01 percent.

Shares in KT&G (033780.KS) also outperformed against the
benchmark index, trading 0.95 percent higher, helped by a
positive brokerage note from Morgan Stanley.

Morgan Stanley said in its note on Wednesday that it expects
the South Korean tobacco monopoly's first quarter earnings to
beat Morgan Stanley's earlier earnings estimates.

"We had expected 211 billion won of operating profit and 199
billion won in net income (for the first quarter 2009). However
strong cigarette exports and tight cost control could increase
operating profits, 237 billion won now expected. Thanks to
favourable foreign exchange movements, net income could reach 235
billion won in our view," Morgan Stanley said.

(Editing by Jacqueline Wong)