Seoul KOSPI breaks 1,800 for first time since Jan

(Updates to mid-morning)

SEOUL, April 21 (Reuters) - Seoul's main KOSPI index surged
1.7 percent on Monday, breaking the 1,800 barrier for the first
time since Jan 11, boosted by techs and financials as U.S.
earnings fanned hopes the credit crisis has hit bottom.

Chipmakers such as Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) and Hynix
Semiconductor (000660.KS: Quote, Profile, Research, Stock Buzz) gained on expectations of a memory chip
market turnaround, buoyed by a 2.5 percent surge in the
Philadelphia Stock Exchange semiconductor index on Friday and a
positive market outlook from Hynix.

The chief executive at Hynix, the world's No.2 memory chip
maker said on Friday that he does not see further drops or rises
in prices of computer memory chips this quarter and expects an
improvement in the market in the second half.[ID:nSEO272130]

Samsung gained 0.75 percent to 670,000 won and Hynix rose
1.94 percent to 28,850 won.

"Memory chip market sentiment is improving steadyfastly on a
view that the memory chip market downturn has hit bottom," said
Jay Kim, an analyst at Hyundai Securities.

The Korea Composite Stock Price Index stood 1.7 percent
higher at 1,801.64 points as of 0215 GMT hitting its highest
since Jan 11 when it stood at 1,847.11.

The KOSPI has driven up 17 percent from its 11-month low of
1,538 points in mid-March as banks have shown they are getting a
grip on losses from the subprime crisis and as techs rally.

The index, however, is still 13.7 percent down from last
November's all time high of 2,085 points, having retreated 26
percent from the record peak to the March low.

"The index will likely make gradual, though not substantial
gains from 1,800 points," said Kang Moon-sung, a market analyst
at Korea Investments & Securities.

LG RECORD

LG Electronics (066570.KS: Quote, Profile, Research, Stock Buzz) rose 3.86 percent to 148,000 won,
hitting a new record high and extending its recent gains after
earnings last week from Nokia, the top mobile phone maker, showed
that demand for mobile phones was likely to remain firm this year.

Financials also rose on expectations that the worst of credit
crisis may have passed, after shares in Citigroup (C.N: Quote, Profile, Research, Stock Buzz) rose 7.4
percent despite a $5.11 billion quarterly loss and planned job
cuts.

"Although big losses were reported from the U.S. banks,
investors taking them more as cleaning up the subprime mess, and
expect the banks to improve from there," said Lee Sun-yeob, a
market analyst at Goodmorning Shinhan Securities.

Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) rose 1.54 percent to 66,100 won and
Shinhan Financial Group (055550.KS: Quote, Profile, Research, Stock Buzz) gained 0.9 percent to 56,000
won.

Hyundai Motor (005380.KS: Quote, Profile, Research, Stock Buzz) also advanced 3.33 percent to
83,700 won on positive earnings outlook, helped by the weaker won
currency. Kia Motors (000270.KS: Quote, Profile, Research, Stock Buzz), its smaller affiliate, rose
2.27 percent to 13,500 won.

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