Seoul shares slip on financial jitters, won weighs

* KOSPI falls 3.24 pct, financial titles slide

* Foreign selling continues on weakening won

* Little impact from North Korea missile talk (Updates to close)

By Rhee So-eui

SEOUL, Feb 24 (Reuters) - Seoul shares slid more than 3 percent on Tuesday, hit by a regional sell-off triggered by mounting concerns over the global financial system's health that pounded financial stocks and blue chips across the board.

A drop in the won's KRW= value against the dollar, a sign of growing risk aversion among investors, encouraged foreign investors to dump shares and could dampen any remaining buying interest, analysts said.

News that North Korea was preparing a satellite launch, which experts said could be a test-launch of its missile, had little impact on the already battered market. [ID:nSEO362880]

Outperformers include LG Display Co Ltd (034220.KS), which was supported by improving panel sales, and defensive titles such as telecom operators and food makers.

The Korea Composite Stock Price Index fell 3.24 percent to finish at 1,063.88 points.

Concerns over the U.S. banking sector and the global financial system's health overtook short-lived hopes on Monday that the U.S. government would help Citigroup (C.N) and stabilise the markets.

"Prospects that U.S. and other developed markets could pull together a recovery are diminishing," said Park Suk-hyun, an analyst at Eugene Investment & Securities.

"Foreign investors who bought Korean shares since late last year are now offloading their holdings as the won slumps," Park said, adding whether KOSPI would be supported above 1,000 points depended on the won's performance.

Foreigners sold a net 304 billion won ($201 million) worth of stocks on the main domestic board as of 0615, marking their 11th consecutive selling session.

Financial titles led the market lower, with Shinhan Financial Group (055550.KS) falling 6.1 percent and KB Financial Group (105560.KS) dropping 4.57 percent.

Samsung Securities (016360.KS) slid 4.08 percent and Mirae Asset Securities (037620.KS) lost 6.53 percent.

Shipbuilders were also hit amid signs of a deepening sector downturn, as ship orders had dried up even at top industry giants such as Hyundai Heavy Industries, analysts said.