Actually, it's the rear suspension that helps create oversteer. I sort of oversimplified...

An aggressive front LSD helps cure understeer while under throttle, which leads to a sort of neutral steer in corners.

What the LSD does is lock up the diff when your inside front wheel starts spinning. On the track, in a tight corner, you can't accelerate out of said corner easily because when you step on the gas, the unloaded inside front wheel spins away all the power, leading to a slow exit and excessive understeer. With an aggressive LSD, that power goes to the outside front wheel instead. Heck, if it's aggressive enough, it can technically be used to produce oversteer by sending all the power to the outside front wheel, but that might take an electronic diff, and it'd probably be too aggressive for street use (konting kabig lang... BAM!.. spin ka na! ).

An LSD would be great for track, but they're hard to find and/or expensive. Surplus ones are available for some cars (Hondas, Nissans), but durability of surplus items is questionable). The cheapest brand new LSD for my car is about 30,000 pesos. The best... Quaife, costs about 80,000. For that much money, you could have a full suspension set-up already. If you want to track your car, first thing you get is good tires (like Advan Neovas or Falken Azenis), then better brake pads (plus DOT4 fluid, to keep temps under control), then a better suspension. Once you've exhausted all of that, then you get the LSD. (Off-topic off)