Seoul shares slide hitting a new 3-year low

SEOUL, Oct 17 (Reuters) - Seoul shares extended losses on Friday to fall more than 3 percent to their lowest since Nov. 2005. The main index dumped earlier 2.6 percent gains with falls led by banks, and slid below last week's multi-year low.

The Korea Composite Stock Price Index was down 3.54 percent to 1,169.98 points as of 0141 GMT, below last week's 1,178.51-point low which was hit before the goverments in the U.S. and Europe unveiled financial system rescue plans.

The index is back on the downward track after posting a 9.4 percent fall in the previous session, the third-biggest percentage drop in the market's history.

Falls were led by banking issues, with KB Financial Group (105560.KS) down 12.79 percent and Shinhan Financial Group (055550.KS) down 8.39 percent.

(Reporting by Park Jung-youn; editing by Keiron Henderson)