Seoul shares slipped 2 percent on Tuesday as demand worries following a bankruptcy filing by a major U.S. electronics retailer sent tech exporters such as LG Electronics lower, Reuters reported yesterday. Banks also fell on jitters about funding difficulties and rising bad debt. The United States is South Korea's second-biggest export market. Appliance and mobile phone maker LG Electronics dropped 6.99 percent and LG Display, a maker of flat screens for TVs and computers, declined 6.46 percent. Hynix, which produces chips used in computers and consumer electronics, fell 8.52 percent. Samsung Electronics, the world's biggest TV maker and second-ranked mobile phone maker, outperformed with a 0.84 percent loss. In the financial sector, regulator data showed domestic banks' capital adequacy ratio fell to the lowest in seven and a half years, adding to concerns after Fitch Ratings lowered on Monday its ratings outlook for South Korea to negative. Read more.