Seoul stocks end 0.62 pct higher on tech advance

(ATTN: ADDS bond yields at bottom)
SEOUL, Dec. 30 (Yonhap) -- South Korean stocks finished the last session of this
year rising 0.62 percent Wednesday as gains by memory chip makers helped offset
worries over Kumho Asiana Group's debt rescheduling, analysts said. The local
currency rose sharply against the U.S. dollar.
Rebounding from opening losses, the benchmark Korea Composite Stock Price Index
(KOSPI) gathered 10.29 points to end at 1,682.77, taking this year's total gain
to 49.7 percent. Volume was moderate at 321.7 million shares worth 4.2 trillion
won (US$3.6 billion) with gainers outpacing losers 476 to 325.
The bourse started the session in negative terrain, pulled downward by units of
the liquidity-squeezed Kumho Group and banks. Kumho Group's creditor banks said
near the market close they agreed with the group to restructure debts for Kumho
Tire Co. and Kumho Industrial Co., allowing two other units -- Korea Kumho
Petrochemical Co. and Asiana Airlines Inc. -- more time for debt repayment.
"The decision contained jitters that the debt problem could be far-reaching to
other industries while gains by tech shares lend support to the market after an
anti-trust body decision," said Kim Young-joon, an analyst at SK Securities Co.
Kumho Tire, which said a day earlier it will delay its December wage payment to
January, plunged by the daily limit of 14.98 percent to 3,605 won and
construction unit Kumho Industrial also fell by the daily limit of 14.91 percent
to 8,330 won.
Woori Finance Holdings, which controls' second biggest lender Woori Bank,
declined 4.15 percent to 13,850 won and Shinhan Financial Group shed 1.37 percent
to settle at 43,200 won on concerns banks may have to increase loan-loss reserves
against their lending to the troubled business group.
Gains by high-tech electronics shares, however, helped the key index close in
positive territory after the anti-trust agency cleared flash memory chip makers
including Samsung Electronics of charges of price fixing, ending a two-year long
probe.
Leading memory-chip maker Samsung rose 1.65 percent to 799,000 won and smaller
rival Hynix Semiconductor surged 4.28 percent to end at 23,150 won.
Korea Exchange Bank rose 5.07 percent to 14,500 won a day after a Seoul appellate
court ruled the controversial acquisition of the lender by Lone Star was not
conducted at a below-market price, paving way for the U.S. buy-out fund to sell
the bank.
The local currency ended at 1,164.5 won to the U.S. dollar up 6.7 won from
Tuesday's close after the Bank of Korea said the nation's manufacturer sentiment
rose for the first time in three month for January, dealers said.
The South Korean stock market ended the year after Wednesday's close and will
resume trading on Jan. 4 at 10:00 a.m., one hour later than usual.
Bond prices, which move inversely to yields, closed lower. The yield on the
benchmark three-year Treasury note rose 0.02 percentage point to 4.41 percent,
and the return on five-year government bonds also gained 0.02 percentage point to
close at 4.92 percent.
pbr@yna.co.kr
(END)