SEOUL, Nov 18 (Reuters) - Shares in South Korea's No.2 cosmetics company LG Household & Health (051900.KS) leapt by their daily limit to a record high on expectations for its possible purchase of a smaller domestic rival.

The Korea Economic Daily reported that LG Household was looking at THEFACESHOP, majority owned by private equity firm Affinity Equity Partners, in a deal estimated to bring in 400 billion won ($346.6 million).

LG Household rose 10.5 percent to 289,500 won by 0033 GMT, coming off its initial high of 301,000 won, a record.

(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner)