RPT-Seoul stocks ease, Hynix slips on U.S. court case

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(Updates to mid-morning)

SEOUL, March 27 (Reuters) - Seoul stocks were down 0.9
percent by midmorning on Thursday, with technology shares lower
after world No.2 memory chipmaker Hynix Semiconductor Inc
(000660.KS: Quote, Profile, Research, Stock Buzz) lost a patent wrangle with a U.S. rival.

Hynix fell 3.4 percent to 25,550 won after a U.S. jury ruled
in favour of Rambus Inc RMBS.0 over Hynix and other chip
makers, dampening investor sentiment on worries about legal and
compensation costs, analysts said.

Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) fell 1.96 percent to 600,000
won on the back of revived worries about a U.S. recession, after
news overnight that U.S. orders for durable goods tumbled
unexpectedly in February.

"Samsung needs stronger fundamentals to rise above the
resistance level of 610,000 won, and grim macro factors are not
helping," said Suh Do-won, an analyst at Hanwha Securities.

Although its first quarter earnings are forecast to be solid,
investors are unsure whether Samsung will continue to report
healthy earnings in subsequent quarters, as recession worries
overshadow the market, he added.

The Korea Composite Stock Price Index was down 0.9 percent to
1,664.60 as of 0148 GMT. If the index closes lower it will break
a string of seven straight gains which has boosted the KOSPI by
more than 6 percent in over a week.

Financials also declined as credit market concerns resurfaced
after top central bankers said no end was in sight to the global
credit crunch.

ECB President Jean-Claude Trichet and Bank of England
Governor Mervyn King said the credit crunch was far from over and
had in fact entered a new phase. [ID:nN26345348]

Banks such as Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) and Hana Financial
Group (086790.KS: Quote, Profile, Research, Stock Buzz) fell, with Kookmin down 1.6 percent to 55,300
won and Hana down 1.71 percent to 40,150 won.

Construction companies also declined, led by Hyundai
Engineering & Construction (000720.KS: Quote, Profile, Research, Stock Buzz), after a stake sale in
Daewoo Shipbuilding and Marine Engineering's (042660.KS: Quote, Profile, Research, Stock Buzz) sale was
kicked off on Wednesday, ahead of an expected Hyundai sale,
dampening investor appetite for its shares.

"Investors who were hyped up about the Hyundai sale are
rather disappointed. Also, high vacancy rate of newly built
apartments in rural provinces worry investors about the sector,"
said Kim Young-gak, an analyst at Hyundai Securities.

Hyundai Engineering fell 4.8 percent to 84,600 won and Daewoo
Engineering & Construction (047040.KS: Quote, Profile, Research, Stock Buzz) lost 0.95 percent to
20,950 won..

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