Seoul shares rise; techs gain, steelmakers fall

(Updates to mid-morning)

SEOUL, April 24 (Reuters) - Seoul shares traded slightly
higher on Thursday with gains by technology shares such as
Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) outweighing losses by steelmakers
on worries about rising costs of raw materials.

Technology shares rose, with Samsung Electronics up 1.99
percent at 666,000 won, helped by gains in tech shares on Wall
Street on positive earnings news and reports of new investment
plans by Samsung Group.

Local media reported that Samsung Group plans to invest 27
trillion to 28 trillion won ($27-28 billion) in facilities and
R&D in fiscal year 2008, of which 10 trillion won is reportedly
set aside for Samsung Electronics, the world's largest memory
chip maker.

"It is good that Samsung is finally able to carry on its
business plans, after being stalled by the probe," said Kim
Young-june, an analyst at Kyobo Securities.

The Korea Composite Stock Price Index was up 0.30 percent at
1,806.28 points as of 0145 GMT.

However, analysts said the index would have a hard time
rising significantly beyond the low 1,800s, after recent steep
gains and amid a lack of new, strong positive developments among
fundamental factors.

"Positive developments like a key interest rate cut by the
Bank of Korea, for instance, could raise the index up to 1,900,"
Kim added.

Hynix Semiconductor (000660.KS: Quote, Profile, Research, Stock Buzz), the world's No.2 memory chip
maker, rose 0.69 percent to 29,150 won on the back of recent
gains in DRAM and NAND flash memory chip prices, pointing to a
slow recovery in the sector.

Rivals' plans for lower allocations for capital spending also
raised expectations for improvements in inventory levels,
analysts said.

"A turnaround is still some way off, but it appears that
memory chip makers may be out of the tunnel, as pricing slowly
improves and as better control of chip output is seen being
implemented by rivals like Powerchip of Taiwan," said Kyobo
Securities' Kim.

LG Electronics (066570.KS: Quote, Profile, Research, Stock Buzz) rose 1.77 percent to 144,000 won,
while LG Display (034220.KS: Quote, Profile, Research, Stock Buzz) dropped 1.48 percent to 43,150 won
on continued concerns about intensifying competition as rivals
pursue aggressive marketing and cost-cutting strategies.

Steelmakers fell despite the latest steel price hikes on
worries over whether the price increases would effectively offset
rising prices of raw materials.

Dongbu Steel (016380.KS: Quote, Profile, Research, Stock Buzz) fell 1.85 percent to 13,300 won and
Hyundai Steel (004020.KS: Quote, Profile, Research, Stock Buzz) dropped 0.51 percent to 77,600 won.
(Reporting by Park Jung-youn; Editing by Edmund Klamann)