Korea Hot Stocks-Banks, Hynix, LG Display

SEOUL, April 10 (Reuters) - Stocks on the move on Thursday include:

As of 0301 GMT, the main KOSPI was up 0.51 percent at 1,763.70 points, recouping early losses on worries over a global economic slowdown, with chip makers such as Hynix Semiconductor Inc (000660.KS) up strongly.

The index opened 0.52 percent lower at 1,745.60 points.

**BANKS RISE ON DEREGULATION HOPES**

Shares in banks jumped on growing expectations that the government will be able to quickly implement deregulation policies on the financial sector after securing a parliamentary majority in Wednesdays South Korean elections.

Kookmin Bank 060000.KS rose 3.9 percent to 64,000 won, and Hana Financial Group (086790.KS) gained 4.0 percent to 46,850 won.

"Restrictive policies such as the rule that prohibits industry capital from holding stakes in local banks are expected to ease sooner in the aftermath of the election," said Yoo Jae-sung, an analyst at Samsung Securities.

0257 GMT

**HYNIX GAINS ON HOPES FOR PRICE RECOVERY**

Shares in Hynix Semiconductor Inc (000660.KS), the world's second-biggest maker of DRAM (dynamic random access memory) chips, rose 2.42 percent against the trend to 27,500 won on growing hopes a slump in the memory industry may be ending soon.

Reuters reported Tuesday that Hynix had raised the contract price of DRAM chips "marginally" and expected further gains.

"Hynix is expected to post a huge operating loss for the first-quarter of about 470 billion won, but numbers will improve from the second quarter, " said Kim Young-jun, an analyst at Kyobo Securities.

World No.1 memory chip maker Samsung Electronics (005930.KS) also rose against the market trend, gaining 1.1 percent to 653,000 won.

Another analyst said talk of a possible acquisition of Hynix by a unit of the LG group was boosting Hynix shares.

LG Electronics (066570.KS) has repeatedly denied rumours that it was interested in acquiring Hynix.

"We are not interested in buying Hynix," an LG spokeswoman said on Thursday.

0039 GMT

**LG DISPLAY FALLS ON PHILIPS RESTRUCTURING**

LG Display Co Ltd (034220.KS) fell 1.6 percent to 46,150 won after 13.2-percent shareholder Philips Electronics (PHG.AS) said it would transfer its struggling North American TV business to Japan's Funai Electric (6839.OS).

"With Philips' withdrawal from the U.S. TV market, LG Display is at risk of losing a steady customer for the U.S. market," James Kim, an analyst at Lehman Brothers, said in an emailed note. "(Also) the U.S. TV market is showing signs of a demand slowdown."

LG Display, whose top shareholder is South Korea's LG Electronics Inc (066570.KS), is set to report strong first-quarter earnings later on Thursday helped by the booming flat-screen TV market and tight panel supplies.

0023 GMT (Reporting by Rhee So-eui and Park Ju-min; Editing by Marie-France Han and Keiron Henderson)