South Korea Stocks: Kia, LG Electronics, M&S, OLK, Samsung, SK

By Kyung Bok Cho

June 27 (Bloomberg) -- South Korea's Kospi index declined 33.21, or 1.9 percent, closing at 1,684.45 in Seoul, the lowest since March 27. The measure lost 2.7 percent this week.

The following were among the most-active stocks in South Korean markets.

Automakers: Kia Motors Corp. (000270 KS), South Korea's second-biggest automaker, slipped 450 won, or 3.8 percent, to 11,350, the most since June 3. The company's unionized workers voted to strike over wages starting July 3, the Maeil Business Newspaper reported, citing South Korea's labor ministry.

Hyundai Motor Co. (005380 KS), whose union today will complete its voting on whether to strike, lost 4,100 won, or 5.4 percent, to 72,500, the most since Jan. 15.

Separately, South Korean auto sales will be ``lackluster'' for the rest of the year as oil prices rise and consumer confidence declines, CLSA Ltd. said in a report. The brokerage maintained an ``underperform'' recommendation for Hyundai.

Oil-dependent companies: Crude oil gained 3.8 percent to close at $139.64 a barrel yesterday in New York after earlier rising to a record $140.39. It was recently at $139.30 in after- hours trading.

Korean Air Lines Co. (003490 KS), the nation's biggest carrier, lost 2,300 won, or 4.3 percent, to 50,900, the most since June 9. Korea Line Corp. (005880 KS), the second-largest bulk shipping line, retreated 1,500 won, or 0.9 percent to 174,000, the lowest since June 16.

HS Bio Pharm (053950 KS), a drugmaker, rose 400 won, or 11 percent, to 4,150, the most since April 17. Second-quarter operating profit, or sales minus the cost of goods sold and administrative expenses, will increase 52 percent from the previous three months, while earnings prospects will improve further in the second half, Kiwoom.com Securities Co. said in a report.

Korean Reinsurance Co. (003690 KS), the nation's only reinsurer, slipped 400 won, or 3.4 percent, to 11,500, the lowest since June 10. May operating profit decreased 41 percent from the previous year to 8.7 billion won, the company said.

LG Electronics Inc. (066570 KS), Asia's second-largest handset maker, declined 4,500 won, or 3.6 percent, to 119,500, the lowest since March 26. Lehman Brothers Holdings Inc. cut its price estimate by 12 percent to 134,000 won, in a report. Second- quarter mobile-phone shipments will miss the company's projection and plasma displays could see ``further momentum slowdown,'' wrote James Kim, an analyst.

M&S Co. (000300 KS), which makes aluminum products, jumped 435 won, or the daily limit of 15 percent, to 3,360, the highest since March 13. The company said it signed an agreement with Samsung Electronics Co. to jointly develop aluminum parts for mobile phones.

OLK Co. (084810 KS), which recently expanded into resource exploration and trading, retreated 70 won, or 9 percent, to 705, the lowest since Aug. 9, 2006. A unit of Korea Electric Power Corp. canceled a 5.25 billion won contract for coal after the material's quality failed to meet the power producer's criteria, OLK said.

Samsung Electronics Co. (005930 KS), Asia's biggest mobile- phone maker, slid 22,000 won, or 3.3 percent, to 643,000, the lowest since April 1. Second-quarter operating profit will be ``weaker than expected'' at 2.09 trillion won, Goldman, Sachs & Co. said in a report, saying handset profitability has declined. The brokerage cut its price estimate by 3.2 percent to 821,000 won.

Samsung Electro-Mechanics Co. (009150 KS), an electronics- parts maker, lost 1,300 won, or 3.1 percent, to 40,450, the lowest since Feb. 13. Kiwoom.com cut its price estimate by 9 percent to 61,000 won, in a report, saying second-quarter operating profit will be 31.1 billion won, missing a previous estimate of 54.7 billion won.

SK Energy Co. (096770 KS), South Korea's largest oil refiner, climbed 1,500 won, or 1.3 percent, to 114,500, the highest since June 9. The company is targeting a six-fold increase in its oil and gas production by 2015 to benefit from high prices, while doubling the reserves of its overseas fields, said Lim Si-jong, leader of the company's exploration and production team.

To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net