By Jungyoun Park

SEOUL, July 1 (Reuters) - Seoul stocks rose on Wednesday,

helped by South Korean export data, with shares in LG Innotek rallying on the first day of the trading after it

completed a merger with LG Micron Ltd.

The Korea Composite Stock Price Index (KOSPI) was up

0.63 percent at 1,398.77 points as of 0137 GMT.

'Encouraging export data certainly has helped stock market

sentiment. Data seems to have pleased foreign investors.

Foreigner who bought into Seoul stocks half-assured are more

actively buying now,' said Suh Dong-pil, a market analyst at Hana

Daetoo Securities.

South Korean exports in June fell at the slowest clip since

October 2008 from a year earlier, provisional government data

showed on Wednesday, bolstering hopes for a sustained recovery in

Asia's fourth-largest economy.

Foreign investors were buyers of a net 35 billion won ($34.40

million) worth of shares, picking up domestic stocks for a fifth

consecutive session.

Shares in LG Innotek Co Ltd, a component-making

unit of LG Electronics Inc, rallied 3.54 percent after it

completed a long-expected merger with LG Micron Ltd.

The merger to create a comprehensive electronics parts maker

was approved in May after being delayed from last year due to the

volatile stock market.

The new combined company, launched as of Wednesday, said it

would focus on light-emitting diode business and aimed to become

the world's No. 10 electronics parts maker by 2012.

Meanwhile Kumho Electric jumped 5.25 percent

after the company said in a filing to the Korea Exchange that it

is working to buy a stake in Lumimicro a manufacturer

of light emitting diode (LED).

'The decision to purchase a stake in Lumimicro was a smart

decision. A synergy that will help Kumho Electric to solidify its

growth platform, is expected with the Lumimicro stake purchase,'

said Lee Jeong, an analyst at Hana Daetoo Securities.

Shares in LG Electronics also advanced 1.71

percent as a positive brokerage note helped raise investor hopes

for earnings at the world's No.3 handset maker and household

appliance giant.

'Its market share in its major product lines, such as

handset, television, and air conditioner....is expected to grow

rapidly,' said Samsung Securities in its note on Wednesday.

'We expect LG Electronics to post 966 billion won in its

operating profits for the second quarter,' Samsung Securities

said adding that it has raised its target price to 176,000 won.

($1=1017.5 Won)

(Editing by Ken Wills)

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