The chamber said in a statement the overall business performance for the whole of this year would lag significantly as export growth of some industries including steel was forecast to slow in the last quarter.

The forecasts were the result of a meeting among officials from key industries, it said.

Despite hopes for enhanced price competitiveness against Japanese exports on the rising yen, South Korea's exports were unlikely to grow due to depressed economies of major import countries and heightened export competition, it said.

For the automobile industry, the chamber said it expected domestic demand to fall and exports to increase in the fourth quarter. Automobile production is forecast to reach two million vehicles this year, with local demand falling to 750,000 and exportsregistering 1.3 million units, it said.

The chamber said production and domestic demand for electronics were expected to fall on depressed private spending and slower investment by the government and companies.

It said exports of electronics would also decline on falling export unit prices of electronic goods.