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KOSPI rises, foreigners net buyers

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Korean won weakens against dollar

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South Korea benchmark bond yield rises

SEOUL, Jan 6 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares rose on Friday, as investors bet on an earlier-than-expected turnaround in the semiconductor sector amid hopes that production cuts will help rebound chip prices. The Korean won dipped, while the benchmark bond yield inched up.

** The benchmark KOSPI was up 9.06 points, or 0.40%, at 2,273.71, as of 0046 GMT, recouping early losses of 0.50%.

** The index is set to end the first week of 2023 with a gain of more than 1.7%, after seven consecutive weekly losses.

** The benchmark started the session in the red, tracking overnight Wall Street slump on data signalling a stronger-than-expected U.S. labour market.

** The market reversed course to trader higher with heavyweight chipmakers Samsung Electronics and SK Hynix extending gains by more than 1% each.

** The world's largest memory-chip maker Samsung Electronics reported a likely 69% plunge in December-quarter operating profit to an eight-year low, much worse than analysts' forecasts.

** "The earnings shock supported investors' hopes for a production cut by the chipmaker, which will bring forward a rebound in the semiconductor cycle," said Choi Yoo-june, analyst, Shinhan Securities.

* Production and capital investment cuts are usually seen as an upside factor for semiconductor stocks, as they supposedly improve chip prices, and thus, manufacturers' earnings.

** Chipmakers witnessed an upbeat week after South Korea rolled out plans to offer large tax breaks to semiconductor and other technology companies investing at home.

** "Still, gains are capped amid a wait-and-watch mode ahead of U.S. employment data due later in the day, which will help investors gauge the future monetary tightening pace in the United States."

** Foreigners were net buyers of shares worth 44.4 billion won ($34.96 million).

** The won was quoted at 1,270.0 per dollar on the onshore settlement platform, 0.05% lower than its previous close.

** The currency was set to post the first weekly loss in three and the worst since mid-November 2022.

** In money and debt markets, March futures on three-year treasury bonds fell 0.11 point to 103.66.

** The most liquid three-year Korean treasury bond yield rose by 5.4 basis points to 3.695%, while the benchmark 10-year yield rose by 0.7 basis points to 3.577%.

($1 = 1,269.9900 won) (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)