Seoul shares flat on options caution; banks rise

* Foreign investors sell

* Caution pervades ahead of rate meeting, options expiry

* Financials, commodity issues outperform

By Jungyoun Park

SEOUL, Feb 10 - Seoul shares traded flat on Wednesday amid caution before options expiry and the central bank's interest rate meeting on Thursday, but reports of an aid plan for heavily indebted Greece helped sentiment.

European governments have agreed in principle to help Greece, a senior German coalition source said on Tuesday.[ID:nSGE61801C]

"Sentiment has improved but buying appetite is still weak. Investors want to know the details of this reported Greece aid agreement, and caution pervades ahead of options expiry," said Bae Sung-young, a market analyst at Hyundai Securities.

The Korea Composite Stock Price Index <.KS11> was down 0.02 percent to 1,570.10 points as of 0111 GMT.

Foreign investors were sellers of a net 71.5 billion won worth of stocks, while retail investors bought a net 122.6 billion won.

Banking issues continued their rebound, with KB Financial Group <105560.KS> up 1.86 percent and Woori Finance Holdings <053000.KS> up 2.64 percent.

Brokerages also rose in line with broader stock market gains, with shares in Daishin Securities <003540.KS> climbing 1.67 percent and HMC Investment Securities <001500.KS> up 1.03 percent.

Falls in the Baltic Dry Index <.BADI>, which tracks the cost of shipping key commodities, pushed shipbuilding issues lower.

Shares in Hyundai Heavy Industries <009540.KS> were down 0.97 percent and Daewoo Shipbuilding & Marine Engineering <042660.KS> lost 1.37 percent.

A stronger won <=KRW> boosted transporters and commodities issues amid expectations the firming currency would reduce the cost of importing raw materials.

Shares in Korean Air Line <003490.KS>, South Korea's top air carrier, were up 0.85 percent and POSCO <005490.KS>, the world's No.4 steelmaker, advanced 0.19 percent.