SEOUL, Mar 2 POSCO Co. Ltd. 005490.KS surged as much as 3.7 percent on Friday aft

SEOUL, Mar 2 (Reuters) POSCO Co. Ltd. surged as much as 3.7 percent on Friday after famed U.S. investor Warren Buffett's Berkshire Hathaway Inc. said it owned a 4 percent stake in the South Korean steel maker as of the end of 2006.

The disclosure came in a letter to investors from Buffett on Thursday.

Berkshire owned 3.5 million shares in POSCO as of Dec. 31, 2006, Buffett wrote to shareholders. The stake would be worth 1.23 trillion won ($1.31 billion) as of Wednesdays' close. South Korean financial markets were closed on Thursday for a public holiday.

POSCO was last up 2.97 percent at 363,500, compared with the benchmark KOSPI's 0.10 percent fall.

Reuters DH VP0735