* Shares fall on lacklustre U.S. markets
* LG Electronics rise ahead of new smart phone launch
SEOUL Aug 6 South Korean shares fell on
Tuesday, reacting to lacklustre U.S. market performance after
Dallas Fed President Richard Fisher said overnight the U.S.
central bank should start trimming its massive bond-buying
stimulus in September in the absence of "some disturbing data."
The Korea Composite Stock Price Index (KOSPI) was
down 0.8 percent at 1,900.72 points as of 0205 GMT, having
briefly dropped below a psychologically important 1,900-point
Samsung Electronics fell 1.7 percent while
Samsung's rival LG Electronics Inc rose 2.8 percent
ahead of much anticipated launching of new smartphone "G2" on
Wednesday. LG Display Co Ltd advanced 2.1 percent.
Automaker Hyundai Motor Co advanced 0.7 percent
on expectations that the firmer yen would make the South
Korean exporter more price competitive.
Byucksan Engineering & Construction Co Ltd
shares rose 4.7 percent on news of its creditors' proposal for a
debt-for-equity swap amounting to 2.5 billion won ($2.24
Foreign investors sold a net 28.6 billion won worth of KOSPI
shares by late morning, weighing on the main board.
Decliners outnumbered gainers 514 to 217.
The KOSPI 200 benchmark of core stocks was down 0.9
percent, while the junior KOSDAQ edged 0.1 percent
($1 = 1113.9000 Korean won)
(Reporting by Jungmin Jang; Editing by Choonsik Yoo and Eric