(corrects milestone to 'second straight session' in second paragraph)

* KOSPI rises more than 1%

* Korean won strengthens against U.S. dollar

* South Korea benchmark bond yield soars

* For the midday report, please click

SEOUL, Aug 25 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares rose more than 1% on Thursday, with investors cheering the central bank's better-than-expected growth outlook and an interest rate hike in line with expectations. The won strengthened, while the benchmark bond yield surged.

** The benchmark KOSPI ended up 29.81 points, or 1.22%, at 2,477.26, rising for a second straight session.

** South Korea's central bank raised its key interest rate by a quarter-percentage point.

** The rate hike had neutral impact on the stock market, as it was in line with expectations, while the market took a positive note from the central bank's assessment of smaller chance for economic recession, said Choi Yoo-june, analyst at Shinhan Financial Investment.

** The Bank of Korea cut its projections for economic growth only slightly to 2.6% this year from 2.7% previously, before slowing further to 2.1% in 2023.

** The BOK significantly lifted its inflation forecasts, signalling more policy tightening, sending bond yields and the local currency higher.

** Among heavyweights, technology giant Samsung Electronics rose 1.19% and peer SK Hynix gained 0.97%, while battery maker LG Energy Solution advanced 1.77%.

** Foreigners were net buyers of shares worth 41.5 billion won ($31.10 million) on the main board, extending their buying streak to eighth day.

** The won was last quoted at 1,335.2 per dollar on the onshore settlement platform, 0.52% higher than its previous close.

** In offshore trading, the won was quoted up 0.4% at 1,335.4 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,333.8.

** In money and debt markets, September futures on three-year treasury bonds dropped as much as 0.71 point to 103.95 in late afternoon trade.

** The most liquid 3-year Korean treasury bond yield surged by as much as 20.7 basis points to 3.527%, while the benchmark 10-year yield jumped by as much as 16.3 basis points to 3.596%, marking their highest since June 30. ($1 = 1,334.6000 won) (Reporting by Jihoon Lee; Editing by Rashmi Aich)