While most suppliers have agreed to end their Daewoo Motor (DM) supply boycott in a dispute over outstanding payments, Korea Delphi Automotive Systems - DM's biggest supplier - is continuing talks over its position.

"Unless creditors come up with a revised offer, we have no plan to lift our boycott," Lee Chae-kyu, a planning executive at Korea Delphi, told Reuters.

Delphi is not a member of the Daewoo suppliers association and is understood to be waiting for a revised offer from DM's creditors.

While other suppliers have agreed to resumed supplies to DM, sources say that negotiations over payments are continuing.

Daewoo Motor assembly lines in South Korea were halted last week as a supply boycott by suppliers over an estimated $700 million in unpaid bills took hold.

It is reported that suppliers want to be paid outstanding amounts in full while Daewoo's creditors - led by the Korea Development Bank - want them to offer a discount. It is planned that General Motors' Daewoo-reviving joint venture will still be launched next month despite the supply difficulties.

However, analysts say the dispute could delay the setting up of the joint venture.