* KOSPI falls 1 pct
* Limited impact from Kaesong factory deal cancellation
* Hynix outperforms after asset sale news
(Updates to mid-morning)
By Jungyoun Park
SEOUL, May 18 (Reuters) - Seoul shares declined on Monday,
with news that North Korea canceled a deal with South Korea on a
factory park weighing on some issues and a weaker won KRW= and
recent weakness in crude CLc1 pressuring energy stocks.
The Korea Composite Stock Price Index (KOSPI) was
down 1.00 percent to 1,377.84 points as of 0121 GMT.
"Falls in U.S. shares in the previous session and a lack of
upward momentum after the index's weeks of near-uninterrupted
gains are causing pressure," said Lee Sun-yeop, a market analyst
at Goodmorning Shinhan Securities.
News late on Friday that North Korea was cancelling all wage,
rent and tax agreements with South Korea on the joint Kaesong
factory park just north of their heavily armed border weighed on
stocks in companies that have production units in the factory
park, but had a limited impact on the broader market.
[ID:nPEK58006]
"Seoul market participants have become quite immune to North
Korea-related news and tend not to react sensitively unless the
development has a scale of impact that may affect South Korea's
sovereign rating," Lee said.
Shares in watchmaker Romanson (026040.KQ) and garment
manufacturer Shinwon Corp (009270.KS), which operate in the park,
fell 5.0 percent and 0.69 percent respectively.
Shares in Hynix Semiconductor (000660.KS) outperformed the
broader market, rising 1.13 percent, after the world's No.2
memory chip maker said on Monday it would sell packaging and
testing equipment worth $305 million to a soon-to be formed
back-end joint venture in China. [ID:nSEO238868]
A weaker won currency KRW= boosted auto exporters, sending
Hyundai Motor (005380.KS) 2.05 percent higher and Kia Motors
(000270.KS) up 3.6 percent.
But energy issues declined, weighed down by the weaker
domestic currency and falls in crude prices CLc1 on demand
worries.
SK Energy (096770.KS) shed 3.2 percent and S-Oil (010950.KS)
lost 2.15 percent.
(Editing by Jonathan Hopfner)
