* KOSPI slips, but foreign buying continues

Financials

* Hyundai Motor, Samsung Elec hit fresh record high (Updates to mid-morning)

By Jungyoun Park

SEOUL, April 5 (Reuters) – Seoul shares turned lower on Monday after the market hit a 21-month high in the previous session, with shipyards weighing, as exporters such as Samsung Electronics (005930.KS) continued to gain.

The Korea Composite Stock Price Index (KOSPI) was down 0.26 percent at 1,1718.99 points as of 0215 GMT.

“Foreign investors are still buying, but their buying momentum has weakened somewhat, while we are seeing institutional investors selling amid rising volume of fund redemption at the main index’s current level,” said Won Sang-pil, a market analyst at Tong Yang Securities.

Foreign investors were buyers of a net 75.3 billion won ($67 million) worth of shares, poised to pick up stocks for a 17th session, the longest buying streak since August, 2008. Institutions were sellers of a net 84 billion won.

Analysts also said market rumours that North Korea was relocating its missiles were weighing on sentiment.

“There was talk in market that North Korea was moving its Taepodong missile … and this highlights South Korea’s geopolitical risks at a time when there is already tension following the navy ship’s sinking,” Won added.

South Korea’s Foreign Ministry said it had no knowledge of movements of missiles by North Korea.

Technology stocks such as Samsung Electronics were boosted by news that Apple’s (AAPL.O) iPad carries parts from the world’s No.1 memory chip maker and LG Display (034220.KS), the world’s No.2 flat panel maker.[ID:nN03146377]

Shares in Samsung Electronics were up 1.3 percent, after hitting a new record, while LG Display advanced 2.44 percent.

“Expectations are brewing as Samsung Electronics in particular is set to offer earnings guidance this week … but given the shares’ recent rallies, profit-taking is expected in the latter part of this week,” said Bae Sung-young, a market analyst at Hyundai Securities.

A South Korean newspaper also said on Monday that Samsung Electronics chairman Lee Kun-hee has ordered the company to add a memory chip line. [ID:nSEL003044]

Shares in Hyundai Motor (005380.KS), South Korea’s top automaker, rose 1.95 percent to hit a new record high of 130,500 won, while Kia Motors (000270.KS) gained 1.73 percent.

Shares in NHN Corp (035420.KS) advanced 2.16 percent after a report South Korea’s top Internet portal and Web search service will buy Japanese Internet portal Livedoor Co. for about $74 million. [ID:nTOE63200H]

“The most important factor on determining whether this potential acquisition is positive for NHN will be the deal’s pricing. It should come below $100 million to be deemed positive,” said Wayne Lee, an analyst at Woori Investment & Securities.

“Livedoor is a prominent blog service provider and its acquisition is expected to strengthen NHN’s positioning in Japan,” Lee added.

Livedoor runs a portal site attracting 30 million users a month a popular blog service.

NHN declined to comment on the report.

Meanwhile shipbuilders fell across the board, with Daewoo Shipbuilding & Marine Engineering (042660.KS) declining 4.31 percent and STX Offshore & Shipbuilding (067250.KS) down 6.35 percent.

“Shares in shipyards are under pressure as there are little signs of improvements in fundamentals, while raw material prices are seen going up,” said Joey Lee, an analyst at Shinhan Investment Corporation.

“We may see some order cancellations and delays, but not as massively as last years though,” Lee added. (Additional reporting by Jack Kim; Editing by Jan Dahinten)