Seoul stocks drop after holiday on economic woes

(Updates to mid-morning)

SEOUL, Feb 11 (Reuters) - Seoul stocks fell 3.2 percent early on Monday as investors priced in a slide by global markets during last week's three-day Lunar New Year holiday, sending banks, shipbuilders and technology titles lower.

Growing concerns over the credit market crisis and the slowing U.S. economy are forcing investors to reduce exposure to emerging market equities, resulting in losses across the board, analysts said.

"The KOSPI is actually doing better when compared to the other markets' losses during the holiday," said Kim Seong-joo, an analyst at Daewoo Securities. "The losses could have been steeper."

The Korea Composite Stock Price Index was down 3.18 percent at 1,642.67 points by 0107 GMT.

Analysts said a reliable KOSPI support level will be found only around 1,570 points.

"The slowing U.S. economy will hit emerging economies that rely heavily on exports and higher credit market risks also mean you should sell," Kim said.

Top domestic lender Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) fell 5 percent to 58,900 won and Mirae Asset Securities (037620.KS: Quote, Profile, Research, Stock Buzz), the brokerage unit of South Korea's top mutual fund firm, dropped 5.71 percent to 132,000 won.

Shipbuilders were among the top casualties as the weaker global economy would mean a decline in ship orders from the shipping business.