Seoul shares turn higher; LG, Hyundai extend gains

(Updates to late morning)

SEOUL, July 11 (Reuters) - Seoul shares turned upward by late morning Friday, reversing earlier losses, as buying interest revived for oversold blue chips such as LG Electronics Inc (066570.KS) and Hyundai Motor Co (005380.KS).

The impact of higher oil prices on fuel cost-sensitive stocks such as airlines and shippers had dragged the index lower in the morning, while KT Corp (030200.KS) dropped on concerns over growing competition.

Brokers and insurers retreated from the previous session's gains, but technology heavyweights including Hynix Semiconductor Inc (000660.KS) rose.

The Korea Composite Stock Price Index was up 0.57 percent to 1,546.12 points by 0217 GMT. On Thursday, the index briefly dipped below 1,500 points for the first time since April 10, 2007.

Hyundai Motor Co rose 2.95 percent to 69,800 won, bolstered by a healthy earnings outlook, analysts said.

LG Electronics rose 3.24 percent to 111,500 won, while KT slid 4.6 percent to 43,600 won. (Reporting by Rhee So-eui; Editing by Keiron Henderson)