Seoul shares hit 16-month low on techs, insurers

*Tech issues lower on outlook worries

*Airlines, tourism issues fall on higher oil

*Casualty insurers fall on Samsung Fire online venture talk

(Updates to midmorning)

SEOUL, Aug 22 (Reuters) - Seoul shares hit a 16-month low on
Friday, continuing their downward run for a fifth consecutive
session, with oil's rebound above $121 a barrel and persistent
credit worries weighing on sentiment.

The Korea Composite Stock Price Index was down 1.34
percent at 1,492.34 points as of 0113 GMT, recovering slightly
from a session low of 1,485.64 points, the lowest since April
2007.

"The market's deeply mired in a bearish run and there's very
little appetite for shares right now," said Kim Joong-hyun, a
market analyst at Goodmorning Shinhan Securities.

"Markets will stay this way until the Freddie Mac and Fannie
Mae (mortgage lender) crisis in the United States is somehow
resolved," Kim added.

Shares in tech issues fell across the board on outlook
worries, as signs of slowing economies pointed to slower
technology spending and weaker consumer sentiment.

Samsung Electronics (005930.KS), the world's No.1 memory chip
maker, dipped 0.18 percent to 552,000 won and Hynix Semiconductor
(000660.KS) lost 2.55 percent to 21,050 won.

"DRAM contract prices continued to fall in the second half of
August due to slower demand for personal computers in the third
quarter and pressure from PC makers," said Park Young-joo, an
analyst at Woori Investment & Securities.

Shares in Hynix Semiconductor were led down further by a
recent ratings downgrade by Nomura Securities.

LG Electronics (066570.KS) tumbled 4.13 percent to 104,500
won and LG Display (034220.KS) fell 2.63 percent to 27,750 won on
panel price worries.

Meanwhile shares in casualty insurers were hit by a local
media report that Samsung Fire & Marine Insurance Co Ltd
(000810.KS) was set to offer online-based auto insurance.

"If Samsung Fire enters the online car insurance market, it
will further intensify competition among casualty insurers. This
could weaken their overall profit margins," said Kang Seung-gun,
a market analyst at Daishin Securities.

Shares in Samsung Fire fell 4.66 percent to 194,500 won and
Hyundai Marine & Fire (001450.KS) lost 4.97 percent to 18,150
won.

Higher oil sent airlines lower, with Korean Air Line
(003490.KS) down 3.47 percent to 40,350 won and Asiana Airlines
(020560.KS) shedding 2.07 percent to 4,505 won. Tourism issues
also declined. Hana Tour (039130.KQ) went 3.75 percent down to
26,950 won and Modetour (080160.KQ) shed 1.91 percent to 15,400
won.

However shares in Daewoo Shipbuilding & Marine Engineering
(042660.KS) rose after the world's No.3 shipyard said on Friday
it had won a $706 million Kuwait order.

Daewoo Shipbuilding was up 0.56 percent to 36,100 won.

Key defensive issues such as telecommunications shares
continued to buck the market's downward trend.

SK Telecom (017670.KS) was up 0.26 percent to 193,500 won and
KTF (032390.KS) was up 1.51 percent to 26,900 won.