Seoul stocks rise on foreign buying; Samsung up

(Updates to mid-morning)

SEOUL, March 25 (Reuters) - Seoul shares rose 0.94 percent on
Tuesday morning, led by exporters and financials, as receding
worries about the U.S. credit markets encouraged foreign
investors to pick up beaten down shares.

An increased buyout offer for Bear Stearns BSC.N and
stronger-than-expected U.S. home sales data helped improve
investor sentiment, analysts said.

"Gains are being fuelled by foreign demand for local shares
today," said Kim Young-gak, an analyst at Hyundai Securities. "It
appears that foreign investors are more willing to take on
riskier assets on expectations that the credit crunch has hit
bottom and will likely ease from here."

"Softer commodities prices are also helping market sentiment
improve, as the global economic outlook has become somewhat less
grim now," he added.

Foreigners bought a net 111 billion won ($111.3 million)
worth of shares listed on the main board as of 0117 GMT, their
third straight session of buying. Meanwhile domestic institutions
sold 50 billion won, while local retail investors discarded 63.2
billion won worth.

The Korea Composite Stock Price Index was up 1.11 percent at
1,673.80 points by 0218 GMT..

Technology shares such as Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) and
LG Electronics (066570.KS: Quote, Profile, Research, Stock Buzz) rose on expectations of solid first
quarter earnings and steady demand for flat screens and handsets.

Samsung was up 1.84 percent at 610,000 won and LG was up 0.88
percent at 114,500 won.

"Electronics companies, Samsung in particular, are forecast
to report a turnaround in first quarter results thanks to a more
favourable industry cycle and a weak won currency," said Kim
Hak-kyun, an analyst at Korea Investment & Securities.

Carmakers also rose, with Hyundai Motor (005380.KS: Quote, Profile, Research, Stock Buzz) up 3.0
percent at 75,600 won and Kia Motors (000270.KS: Quote, Profile, Research, Stock Buzz) up 0.91 percent
at 11,100 won.

Strong local demand for new Hyundai models has improved first
quarter earnings, analysts said.

Banking titles such as Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) and Shinhan
Financial Group (055550.KS: Quote, Profile, Research, Stock Buzz) rose after JPorgan Chase & Co
<JPM.N increased its offer for Bear Stearns, helping alleviate
concerns that other investment banking shares could tumble.

Kookmin rose 1.45 percent to 55,800 won and Shinhan gained
1.16 percent to 52,200 won.

($1=996.9 Won)

(Reporting by Park Jung-youn; Editing by Marie-France Han and
Keiron Henderson)