South Korean shares rise 1% as Trump delays EU tariffs, battery makers rebound

• KOSPI rises, foreigners net buyers
• Korean won strengthens against dollar
• South Korea benchmark bond yield flat

SEOUL, May 26 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares climbed 1% on Monday, led by battery makers, as risk appetite improved after U.S. President Donald Trump delayed his threat to impose 50% tariffs on the European Union by more than a month.

** The benchmark KOSPI .KS11 was up 26.97 points, or 1.04%, at 2,619.06, as of 0217 GMT.

Trump on Sunday backed off his threat to speed up 50% tariffs on imports from the EU, agreeing to extend his deadline for trade talks until July 9 after the head of the EU executive body said the bloc needed more time to "reach a good deal."

South Korean presidential frontrunner Lee Jae-myung said on Sunday the deadline to reach a deal with the U.S. on President Donald Trump's tariffs needs to be reconsidered to find a mutually beneficial agreement between the two allies.

Among index heavyweights, Samsung Electronics 005930.KS edged 0.09% lower after Trump said a 25% tariff he planed to impose on Apple AAPL.O would also apply to the South Korean smartphone maker and others.

Battery maker LG Energy Solution 373220.KS climbed 2.8%, while peer Samsung SDI 006400.KS jumped 3.5%, in a rebound after sharp losses last week on Trump's tax-cut bill, which includes cancellations of electric-vehicle tax credits.

Shares of Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were up 0.89% and up 0.11%, respectively. Steelmaker POSCO Holdings 005490.KS added 2.14%, while drugmaker Samsung BioLogics 207940.KS fell 0.10%.

Of the total 935 traded issues, 570 shares advanced, while 323 declined.

Foreigners were net buyers of shares worth 121.1 billion won ($88.97 million).

The won was quoted at 1,362.0 per dollar on the onshore settlement platform KRW=KFTC, 0.33% higher than its previous close at 1,366.5.

The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 1.8 basis points to 2.324%, while the benchmark 10-year yield KR10YT=RR fell by 0.8 basis point to 2.747%.

($1 = 1,361.2000 won)