Seoul shares fall on Samsung Heavy, China steps

SEOUL, Dec 10 (Reuters) - Seoul shares edged down on Monday, led by Samsung Heavy Industries (010140.KS: Quote, Profile, Research, Stock Buzz) on worries about its exposure to the country's worst oil spill last week and with machinery makers hit by the latest tightening move in China.

China's central bank on Saturday lifted bank reserve ratios by one percentage point to a record 14.5 percent, effective Dec. 25 -- the first full-point rise in nearly four years, analysts said. [ID:nPEK71172]

"The tightening move was stronger than expected and is likely to continue next year, putting pressure on the real economy," said Byun Hee-koo, a fund manager at Samsung Investment & Trust Management.

"As their (China's) stance is more serious than before, we cannot say the tightening steps had been priced in the stock market."

The Korea Composite Stock Price Index shed 0.53 percent to 1,924.10 points by 0256 GMT.

The fallout from the oil spill over the weekend extended to Samsung Fire & Marine Insurance (000810.KS: Quote, Profile, Research, Stock Buzz) because it had sold insurance coverage to Samsung Heavy for the crane on a barge that punched holes in the hull of a tanker, which leaked crude oil.

Samsung Fire & Marine Insurance shares were 2.51 percent lower at 233,500 won, while Samsung Heavy shares fell 6.55 percent to 39,250 won.

South Korea's maritime ministry has said Samsung Fire was the insurer for Samsung Heavy, which owned both the barge and the tug boat pulling the unpowered vessel.

Online news agency EDaily said Samsung Fire would have to pay up to 4 billion won ($4.35 million) in claims related to the accident, while Samsung Heavy said details of its insurance claim would be decided later.