Seoul shares rally; Samsung, Kia up on results

(Updates to mid-morning)

SEOUL, April 25 (Reuters) - Seoul shares rose on Friday led
by technology shares such as Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz),
after the No.1 chipmaker reported strong first quarter earnings,
while car maker Kia also got a lift from results.

Samsung Electronics rose 3.63 percent to 685,000 won after
reporting a larger-than-expected 37 percent jump in its quarterly
net profit to 2.2 trillion won, on the back of strong LCD and
mobile handset sales.

SK Telecom (017670.KS: Quote, Profile, Research, Stock Buzz) jumped 3.35 percent to 200,500 won,
after reporting on Thursday quarterly profits that beat the
market expectations as it effectively reined in marketing
spending to soften the impact of text message tariff cuts.

The Korea Composite Stock Price Index was up 1.3 percent to
1,822.08 points as of 0149 GMT, hitting a fresh 14-week intraday
high.

"Samsung's numbers just came out astoundingly good. Its
profits from handset and LCD divisions were very impressive,"
said Suh Do-won, an analyst at Hanwha Securities.

"LCD and handsets will do well, at least for the fiscal 2008,
albeit with some oversupply and overheating competition in the
LCD front," he added.

Analysts also said that expectations for an eventual
turnaround in the memory chip market further boosted the shares.

Hynix Semiconductor (000660.KS: Quote, Profile, Research, Stock Buzz), the No.2 memory chip maker
however fell 0.88 percent to 28,250 won after its quarterly net
loss came out steeper than expected.

Other technology shares rose buoyed by the positive market
sentiment, with LG Electronics (066570.KS: Quote, Profile, Research, Stock Buzz) up 4.18 percent to
149,500 won, and LG Display (034220.KS: Quote, Profile, Research, Stock Buzz) up 0.35 percent to 43,100
won.

CARMAKERS RALLY

Kia Motors (000270.KS: Quote, Profile, Research, Stock Buzz), Hyundai's smaller affiliate, rose
4.03 percent to 12,900 won, after reporting a better than
expected operating profit in the first quarter, aided by solid
sales in the higher-margin local market.

Hyundai Motor (005380.KS: Quote, Profile, Research, Stock Buzz) also rose 2.76 percent to 81,800
won in spite of the first quarter net earnings that came below
the market estimate on Thursday, on views that the earnings
outlook is still rosy on the back of the popularity of its new
models and the weaker won currency.

Ford Motor Co.'s (F.N: Quote, Profile, Research, Stock Buzz) unexpected return to profit for the
first time in three quarters also boosted carmakers' shares, as
it offered a glimmer of hope for U.S. manufacturers amid the
economic slowdown.[nN24302270]

Financials such as Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) rose after after
Merrill Lynch & Co (MER.N: Quote, Profile, Research, Stock Buzz) left its dividend unchanged, a signal
that strains on bank finances have eased, lifting Wall Street
financials overnight.

Kookmin Bank rose 2.66 percent to 65,600 won and Shinhan
Financial Group (055550.KS: Quote, Profile, Research, Stock Buzz) gained 3.51 percent to 56,100 won.

Meanwhile shares in KTF Co Ltd (032390.KS: Quote, Profile, Research, Stock Buzz) shed 0.18 percent
to 27,700 won after South Korea's No.2 mobile service carrier
said its first-quarter net profit tumbled 73 percent from a year
ago, falling sharply short of the market consensus.

Fixed line operator KT (030200.KS: Quote, Profile, Research, Stock Buzz) fell 3.22 percent to
46,550 won after posting a 60 percent drop in its first quarter
net profit.

(Reporting by Park Jung-youn; Editing by Keiron Henderson)