* KOSPI rises 0.4 pct, fuelled by autos
* Samsung Elec falls on disappointing Q4 guidance
* Shinsegae gains on GS Homeshopping buyout talk
SEOUL, Jan 7 (Reuters) - South Korean shares finished higher on Friday, led by automakers and retailers including Hyundai Motor Co and Shinsegae Co Ltd , but Samsung Electronics Co Ltd fell on a weaker-than-expected fourth-quarter earnings guidance.
The Korea Composite Stock Price Index (KOSPI) ended up 0.4 percent at 2,086.20 points.
"The market's firm finish today shows its upside momentum is valid despite numerous uncertainties out there, such as how the U.S. job data will come out, and whether or not European debt issues will worsen," said Kim Hyoung-ryoul, a market analyst at NH Investment & Securities.
Samsung Electronics slipped 1 percent to 921,000 won, after hitting an earlier low of 914,000 won after the world's top maker of memory chips, flat screens and TVs gave a weaker-than-expected quarterly earnings estimate, hit by plunging prices. [ID:nTOE70500M]
"I think the fourth-quarter results will mark the bottom. Although its DRAM chip sector may remain in a slump in the first quarter, other businesses such as LCD will provide a boost," said SK Securities analyst Hwang Yoo-Sik.
"Samsung Electronics is diversifying its models such as unveiling different types of slide PCs besides the Galaxy Tab, which is selling well. This is what other rivals cannot do."
Savings banks pared earlier gains and fell as earlier expectations that local large lenders may salvage those banks reeling from insolvent property loans via acquisitions weakened after a media report said financial groups were not interested in buying the listed savings banks.
Solomon Savings Bank fell 4 percent and Shinmin Mutual Savings Bank Co Ltd lost 6.9 percent, after shooting up 15 percent.
Elsewhere Hyundai Motor shares rose 2.1 percent to 198,000 won, posting a fresh closing high as shareholders of Hyundai Engineering & Construction Co Ltd were soon set to decide whether to name Hyundai Motor as preferred bidder for the country's largest builder late on Friday.
Analysts have said uncertainties were fading over the Hyundai E&C bidding battle, which had weighed on Hyundai Motor shares.
A local court cleared the way for Hyundai Motor to move towards taking control of E&C as rejected rival bidder Hyundai Group's request to keep alive its preliminary deal with E&C shareholders. [ID:nTOE70306C] A spokesman from Korea Exchange Bank , a leading E&C shareholder, said it was very likely Hyundai Motor would earn preferred bidder status.
"The main driver for today's shares gain is positive expectations about Hyundai Motor's earnings. But uncertainties about whether it will buy Hyundai Engineering & Construction has eased substantially, and it is also helping shares, " said Lim Eun-young, an analyst at Dongbu Securities.
Shares in Shinsegae advanced 4.5 percent amid market speculation the South Korea's No.2 retailer was interested in buying out GS Homeshopping .
Shinsegae spokesman denied such talk, saying the company "had no such plan."
Shares in GS Homeshopping rose 4.2 percent.
The KOSPI 200 March futures
The junior Kosdaq market gained 0.61 percent to 530.84.
Move on day +0.41 percent 12-month high 2,096.65 6 Jan 2011 12-month low 1,532.68 25 MAY 2010
Change on yr +1.72 percent All-time high 2,096.65 6 JAN 2011 All-time low 93.10 6 JAN 1981
(Reporting by Jungyoun Park; Editing by Kim Coghill)