The Australian airline Qantas is to cancel flights to South Korea from the beginning of February.

The move is a reaction to the continuing economic crisis in Seoul.

Quantas operates four flights a week to Australia

Qantas, which operates four flights a week between Australia and South Korea, is the third airline to suspend services.

The decision reflects the big decline in Australian tourist predictions.

The Australian national flag carrier said bookings were down 65% in the past month and there was little sign of any improvement.

Corporate collapses have left South Korea's economy in crisis. Major restructuring is underway and a rescue package from the International Monetary Fund is in place.

President Kim: Tough times lie ahead

But tough times lie ahead. In his New Year message, President-elect Kim Dae-jung predicted high inflation, increased unemployment and more company failures.

Half of the four million tourists who visit Australia each year come from Asian countries. But since the Korean crisis began, forecasts of growth have been slashed.

In the last week, South Korea's privately-owned Asiana Airlines announced it was halting its two flights a week into the northern Australian resort of Cairns.

Air New Zealand has also suspended four flights a week from Auckland and Brisbane to Seoul.

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