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Friday September 22, 12:05 PM Korea Hot Stocks-KEB, SK Telecom, LG.Philips LCD, KEPCO SEOUL, Sept 22 (Reuters) - Stocks on the move on Friday include: As of 0312 GMT, the main KOSPI fell 1.29 percent to 1,350.46, as exporters were hit by worries about a stronger won currency and after an unexpected drop in factory activity in a key U.S. region sparked concerns about the world's largest economy. The index opened 0.61 percent lower at 1,358.45 points. **KEB DOWN AMID REGULATORS' PROBE** Shares in the country's fifth-largest bank fell 2.78 percent to 12,250 won, on worries about a new probe by the regulatory Financial Supervisory Service (FSS) concerning allegations involving the bank and its top shareholder, Lone Star [LS.UL]. Analysts said the latest investigation, which is separate from ongoing prosecutor investigations into possible irregularities in the way Lone Star bought KEB in 2003, may force the Dallas-based fund to sell its shares in KEB at a lower price than what was agreed to earlier. Kookmin said in May it would pay $7.34 billion for up to 71 percent of KEB, including a 50.5 percent stake from Lone Star. The FSS is looking into allegations that KEB had spread rumours about a possible consolidation of KEB Credit Service Co. shares in 2003 in an attempt to lower the share price of the former unit, therefore lowering the unit's acquisition price, said an FSS official who asked not to be named. KEB absorbed the credit card arm in early 2004. But KEB rejected the allegations and said it has been fully cooperating with the regulator's investigation. Han Jeong-tae, an analyst at Mirae Asset Securities, said the probe was unlikely to scrap the deal between Lone Star and Kookmin, both of which were in negotiations to keep the contract on track after the payment deadline passed last weekend. But the new allegation, if proved true, could press Lone Star to sell off its stake in a rush for less than $7.34 billion, he added. Lone Star could not immediately be reached for comment. **SK TELECOM GAINS ON CALL RATE SPECULATION** Shares in South Korea's biggest mobile services operator rose 2.28 percent to 201,500 won amid speculation the Ministry of Information and Communication could opt to leave SK Telecom's interconnection rates intact, while lowering them for other providers. Interconnection calls involve any calls between two sources from different carriers, including mobile to mobile and mobile to landline. The ministry is expected to announce its new call charge policy on Friday. KTF Co. fell 2.63 percent to 29,600 won, while LG Telecom fell 2.11 percent to 11,600 won amid expectations both telecom operators will see a reduction in the rates they can charge subscribers. 0147 GMT **LG.PHILIPS LCD FALLS ON STAKE SALE WORRIES** Shares in the flat panel maker extended this week's slide amid continued worries an expected third-quarter net loss will be wider than expected and renewed concerns that major shareholder Philips Electronics was looking to sell its stake. The Commercial Times in Taiwan reported on Friday that high- level officials from Japan's flat panel television maker Sharp Corp. had visited LG.Philips LCD last week, sparking rumours it was looking into the possibility of buying Philips' stake in the South Korean flat panel maker. [ID:nTP55964] Speculation that Philips is seeking to sell its 32.9 percent stake in the flat panel maker has intensified since August after the Dutch electronics giant agreed to sell its semiconductor unit. LG Electronics Inc. holds a 37.9 percent stake, with both major shareholders under an agreement to maintain at least a 30 percent stake each in the flat panel maker until July 2007. LG.Philips shares fell 3.71 percent to 32,400 won, after having dropped 8.4 percent in the prior four sessions. 0132 GMT **KEPCO GAINS ON STRONGER WON** Shares in state-run power provider Korea Electric Power Corp. (KEPCO) rose 1.33 percent to 38,150 won after a surge in the South Korean won to 11-week highs is seen cutting the costs of oil imports. A stronger won also makes it less costly for KEPCO to pay back its debt, as around 20 percent of its total debt is denominated in a foreign currency. KEPCO shares have risen 2.3 percent this month as of Thursday's close, compared with a 1 percent gain the KOSPI as a drop in oil prices was seen easing fuel costs. 0030 GMT (Additional reporting by Kim Yeon-hee)