South Korean Stocks Rise; SK Telecom Gains, Doosan Heavy Falls

South Korean stocks rose, led by SK Telecom Co., after the company said it may bid for Hanarotelecom Inc.

``Telecommunication shares are strong today on the potential for mergers and acquisitions,'' said Cho Min Keon, who manages the equivalent of $540 million at Kyobo Investment Trust Management Co. in Seoul. ``The Kospi will stay around 2,000 for a while until the U.S. market gives a clear direction.''

Doosan Heavy Industries & Construction Co. and STX Group company shares fell after prosecutors arrested two executives at an STX unit on suspicion of stealing technology from Doosan Heavy.

The Kospi index rose 0.6 percent to 1,990.47 in Seoul. The Kosdaq fell 0.1 percent to 779.04. Kospi 200 futures expiring in December advanced 0.7 percent to 253.00, while the underlying index rose 0.9 percent to 252.21.

SK Telecom Co., South Korea's largest mobile-phone operator, said yesterday it's reviewing whether to make a bid for Hanarotelecom, after being approached by Goldman Sachs Group Inc. regarding a possible deal. Hanaro said Nov. 6 that the sale of 39 percent held by American International Group Inc. and Newbridge Capital LLC was in the ``final stages.''

SK Telecom rose 9,500 won, or 4.1 percent, to 239,000 won. Hanaro, South Korea's second-largest high-speed Internet access provider, climbed 480 won, or 5 percent, to 10,100 won.

Woori Investment & Securities Co. raised its target price for Hanarotelecom by 45 percent to 16,000 won from 11,000, for SK Telecom by 33 percent to 320,000 won from 240,000, citing a possible takeover.
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