The continuing trouble in the South Korean economy has caused another plant outside of the country to be delayed.

Hyundai has said it will halt work on a car plant in Indonesia, which had been scheduled to open in 1999.

The South Korean group is building the Indonesian plant in partnership with a local firm, Bimantara.

Hyundai's announcement puts the entire future of the development in jeopardy.

In April, the Indonesian Government is expected to say whether it will lower tariffs for foreign cars.

Even if these fall, Hyundai may find problems at home mean they cannot get the hard cash to go on overseas projects.

The news follows the decision by Japanese car producer Toyota to close two Philippine plants for a month due to falling demand.

It also comes shortly after Hyundai confirmed it is suspending work on its major car plant in Dunfermline, Scotland, for a year.

As it said then, all the group's projects remain "pending recovery in the financial markets in Korea."

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