South Korean shares rose on Friday, extending gains into a third session, as investors hoped for positive signs in US budget talks and pro-growth policies from China, while the market awaited a US jobs report due later in the day. The Korea Composite Stock Price Index (KOSPI) gained 0.47 percent to 1,958.82 points as of 0154 GMT, as foreign investors net purchased KOSPI stocks for the seventh consecutive session.

Market heavyweight Samsung Electronics Co Ltd was up 1.7 percent after touching a fresh record intraday high of 1.482 million won. Chipmakers were bullish as SK Hynix Inc rose 3.8 percent on forecasts of a return to operating profit in the fourth quarter.

Steelmakers rose for a third session after leading Thursday's stock gains on a positive demand outlook due to China's plans to fine-tune policies to ensure stable economic growth in 2013. But auto shares fell, continuing their trend of seesawing since late November's rapid gains on strong sales. Hyundai Motor Co fell 2 percent while affiliate Kia Motors Corp dropped 1.8 percent.

Hyundai Elevator Co Ltd and Hyundai Merchant Marine Co Ltd both rose more than 11 percent, as investors bet the controlling shareholders of both companies could buy up more shares to cement management control after Hyundai Elevator's second-largest shareholder filed a suit against Hyundai Elevator last month. Advancing shares outnumbered decliners 453 to 289 near midsession. The KOSPI 200 benchmark of core stocks was up 0.5 percent, while the junior KOSDAQ rose 1 percent higher.

Copyright Reuters, 2012