S. Korea Stocks: GS, Hanjin, Jinsung, Lotte Chilsung, Samsung

By Saeromi Shin

Dec. 22 (Bloomberg) -- South Korea’s Kospi index rose 16.49, or 1.4 percent, to 1,197.46 as of 10:22 a.m. in Seoul. The benchmark stock gauge is set for a 37 percent drop this year, its first annual decline since 2002.

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

Builders: Hyundai Engineering & Construction Co. (000720 KS), the fourth-biggest South Korean builder, rose 1,900 won, or 3.1 percent, to 62,900. GS Engineering & Construction Corp. (006360 KS), the nation’s third-largest builder, added 4,300 won, or 7 percent, to 65,600. The stocks rose as the Ministry of Land, Transportation and Maritime Affairs is scheduled to give a briefing on its operations next year to President Lee Myung Bak at the presidential office today where measures to ease laws on real estate speculation are expected to be announced.

Chipmakers: Samsung Electronics Co. (005930 KS), the world’s largest maker of dynamic random access memory chips, rose 9,000 won, or 1.8 percent, to 498,500. Hynix Semiconductor Inc. (000660 KS), the second-largest maker, climbed 70 won, or 0.8 percent, to 8,590. Prices of the benchmark DRAM chip rose 7.7 percent on Friday, adding to Thursday’s 12 percent gain, according to Dramexchange Technology Inc., Asia’s biggest spot market for chips.

Jinsung T.E.C. (036890 KS), which makes construction machinery components, retreated 1,000 won, or 15 percent, to 5,690, adding to Friday’s 15 percent decline. Woori Investment & Securities Co. cut its recommendation to “hold,” from “buy,” saying the company belatedly included losses from currency derivatives in its third-quarter earnings.

KB Financial Group Inc. (105560 KS), the holding company for the nation’s No. 1 bank, rose 500 won, or 1.4 percent, to 36,300. ING Groep NV, the largest Dutch financial services company, plans to buy back a 15 percent stake in its South Korean unit from Kookmin Bank for 180 million euros ($254 million).

Lotte Chilsung Beverage Co. (005300 KS), the biggest South Korean beverage maker, rose 39,000 won, or 4.9 percent, to 843,000. South Korea’s Lotte Group will acquire Doosan Corp.’s liquor unit for between 500 billion won ($387 million) and 600 billion won, MBN cable business news channel reported, without saying where it obtained the information.

Hanjin Heavy Industries & Construction Co. (097230 KS), South Korea’s first exporter of ships, gained 2,100 won, or 7.5 percent, to 30,100. The company received an order valued at 218.8 billion won ($170 million) to build nine vessels from the Public Procurement Service for the Korea Coast Guard.

Hite Brewery Co. (103150 KS), the nation’s No. 1 brewer, retreated 3,500 won, or 1.9 percent, to 178,500. BNP Paribas SA cut its recommendation to “hold,” from “buy,” in a note, citing slowing volume growth in 2009, higher raw material costs and potential threat to its market share from industry consolidation.

To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net