* KOSPI falls 1.4 pct to its lowest level since Dec
* Apple earnings miss weighs on key part suppliers
* LG Elec falls on handset woes despite doubled Q2 profits
By Joonhee Yu
SEOUL, July 25 (Reuters) - South Korean shares fell to a seven-month low on Wednesday as investors cut risky bets on fears that Europe's debt crisis is worsening and after disappointing earnings from U.S. firms that source their supplies from Korean companies.
The Korea Composite Stock Price Index (KOSPI) fell 1.37 percent to close at 1,769.31 points, trimming some losses after sinking to a session low of 1,758.99 during early trade.
"The selloff wasn't huge by any measure, but the market is exposed to volatile swings right now when volume is so low from dampened risk appetite," said Song Chang-sung, an analyst at Hanyang Securities.
Spain's soaring borrowing costs underscored its refinancing difficulties amid rescue calls from its indebted regions and troubled banks, stoking fears that the euro zone's fourth-largest economy could seek the assistance of international lenders.
The protracted debt crisis in Europe was seen hurting corporate earnings, with Apple Inc's April-June results falling short of expectations and sending shockwaves throughout its key Asian suppliers.
LG Display, a supplier of LCD screens for the iPhone and iPad line of products, saw its shares tumble 4.8 percent while chip supplier Samsung Electronics fell 1 percent.
LG Electronics shares fell 2.1 percent, faltering after a brief spurt of recovery on LG's second quarter results, which saw its profits double from a year ago though its handset division swung to a worrying loss.
Analysts say South Korean stocks are oversold and unlikely to post sharp, extended losses from current levels.
"The price of Korean stocks are nearly on par with book value right now, and the last time the market was straddling this level in December, it was followed up by a strong recovery," said Park Jung-woo, an analyst at SK Securities.
The battered markets could find relief in the near-horizon as investors look to the Federal Open Market Committee (FOMC) and the European Central Bank meetings to provide further easing.
Move on day -1.37 percent
12-month high 2,192.83 8 July 2011
12-month low 1,644.11 26 Sept 2011
Change on yr -3.09 percent
All-time high 2,231.47 27 April 2011
All-time low 93.10 6 January 1981 (Editing by Sanjeev Miglani)