* KOSPI turns higher, up 0.6 pct, on S.Korean export data
* LG Innotek up after completing merger with LG Micron
* Kumho Electric up after stake purchase plan in LED firm
(Updates to mid-morning)
By Jungyoun Park
SEOUL, July 1 (Reuters) - Seoul stocks rose on Wednesday,
helped by South Korean export data, with shares in LG Innotek
(011070.KS) rallying on the first day of the trading after it
completed a merger with LG Micron Ltd.
The Korea Composite Stock Price Index (KOSPI) was up
0.63 percent at 1,398.77 points as of 0137 GMT.
"Encouraging export data certainly has helped stock market
sentiment. Data seems to have pleased foreign investors.
Foreigner who bought into Seoul stocks half-assured are more
actively buying now," said Suh Dong-pil, a market analyst at Hana
Daetoo Securities.
South Korean exports in June fell at the slowest clip since
October 2008 from a year earlier, provisional government data
showed on Wednesday, bolstering hopes for a sustained recovery in
Asia's fourth-largest economy.[ID:nSEV000741]
Foreign investors were buyers of a net 35 billion won ($34.40
million) worth of shares, picking up domestic stocks for a fifth
consecutive session.
Shares in LG Innotek Co Ltd (011070.KS), a component-making
unit of LG Electronics Inc, rallied 3.54 percent after it
completed a long-expected merger with LG Micron Ltd.
The merger to create a comprehensive electronics parts maker
was approved in May after being delayed from last year due to the
volatile stock market.
The new combined company, launched as of Wednesday, said it
would focus on light-emitting diode business and aimed to become
the world's No. 10 electronics parts maker by 2012.
Meanwhile Kumho Electric (001210.KS) jumped 5.25 percent
after the company said in a filing to the Korea Exchange that it
is working to buy a stake in Lumimicro (082800.KQ) a manufacturer
of light emitting diode (LED).
"The decision to purchase a stake in Lumimicro was a smart
decision. A synergy that will help Kumho Electric to solidify its
growth platform, is expected with the Lumimicro stake purchase,"
said Lee Jeong, an analyst at Hana Daetoo Securities.
Shares in LG Electronics (066570.KS) also advanced 1.71
percent as a positive brokerage note helped raise investor hopes
for earnings at the world's No.3 handset maker and household
appliance giant.
"Its market share in its major product lines, such as
handset, television, and air conditioner....is expected to grow
rapidly," said Samsung Securities in its note on Wednesday.
"We expect LG Electronics to post 966 billion won in its
operating profits for the second quarter," Samsung Securities
said adding that it has raised its target price to 176,000 won.
($1=1017.5 Won)
(Editing by Ken Wills)
