* Foreign buying helps support Kospi
* Stronger yen boosts outlook for Korean auto makers
* Electricity supply worries boost some firms in sector
SEOUL, May 30 (Reuters) - Seoul shares slipped early on Thursday following Wall Street's overnight fall, but foreign investors and domestic lifted the index back close to the previous day's two-month high.
The Korea Composite Stock Price Index was up 0.25 percent at 2,006.36 points as of 0242 GMT. At some early points, the index was down in reaction to New York's decline on fears the Federal Reserve could soon reduce its stimulus.
Foreign investors were buyers of a net 70 billion won of stocks, while pension funds purchased a net 11 billion won.
"Investor preference is in transition, from safer stocks in high-dividend sectors to high-growth, cyclical plays," said Park Joong-woo, a market analyst at Samsung Securities.
He predicted there will be a "summer rally" in which the market will test January's high-point of 2,040.
Auto shares firmed as the dollar dropped to its lowest level against the yen in nearly three weeks on Thursday. This eased concerns about how South Korean auto products can compete overseas with Japanese ones.
Kia Motors shares rose 1.7 percent and Hyundai Mobis, an auto parts maker, gained 2.3 percent.
Telecommunication stocks slid as investors locked in profits on the sector after a rally.
SK Telecom fell 2.2 percent and LG Uplus slumped 3.9 percent.
Worries about the country's electricity supplies during the summer buoyed shares in companies related to energy storage and smart power grids. The concern stems from the ongoing shutdown of nuclear reactors.
Shares in Omni System, which makes high-tech power grids, spiked 15 percent. Samsung SDI, a maker of energy storage systems that hit a two-month high on Wednesday, rose another 2.2 percent.
Shares in Hyosung Corp, the holding company of Hyosung Group, lost 3 percent as Hyosung Group is being investigated by South Korea's National Tax Service.
The KOSPI 200 benchmark of core stocks was up 0.3 percent, while the junior KOSDAQ edged 0.3 percent lower. (Reporting by Jungyoun Park; Editing by Richard Borsuk)