Seoul shares slip as banks fall; Hynix gains
* KOSPI sheds 0.14 percent
* Banks fall after new loan rules
* Hynix up on M&A plan
(Updates to mid-morning)
By Jungyoun Park
SEOUL, Sept 7 (Reuters) - Seoul shares slipped on Monday weighed by falls in financials such as KB Financial Group (105560.KS), but gains in Hynix Semiconductor (000660.KS) on strengthening M&A hopes lent markets support.
As of 0149 GMT, the Korea Composite Stock Price Index (KOSPI) was down 0.14 percent at 1,606.65 points.
"Foreign buying has been slowing this month amid worries the South Korean government may be implementing an exit strategy soon," said Y.S.Rhoo, a market analyst at Hyundai Securities, pointing to new mortgage borrowing rules introduced late Friday.
South Korea said it would impose limits on mortgage borrowing in the capital Seoul and two nearby areas, effective from Monday. [ID:nSEO324023]
"Banks rely on loans for their income, and the new rule will surely dampen demand," Rhoo said.
Shares in KB Financial Group fell 1.79 percent and Hana Financial Group (086790.KS) lost 1.25 percent.
But Hynix (000660.KS) rose 3.85 percent after news major shareholders of the world's No.2 memory chip maker would send an invitation for bids for a 28.1 percent stake in the firm this week, and are planning to pick a preferred buyer by the end of this year.[ID:SEL000765]
Shares in online game issues including NCSoft (036570.KS) rallied after a local media report that NCSoft's online game "Aion" was well-received at a U.S. game convention, winning 300,000 advance orders ahead of its public trial in North America this week.
An NCSoft spokesman could not be immediately reached for comment.
"Such positive news reports are boosting hopes about North America sales and are lifting broader online game sector issues," said S.T. Hwang, an analyst at Hana Daetoo Securities.
Shares in NCSoft were up 5.25 percent and Neowiz (042420.KQ) rose 2.98 percent.
Shares in Kumho Tire (073240.KS) spiked 15 percent after its labour union reached a last-minute agreement on Saturday that allowed its plants to reopen and production to resume.
(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)
