SME Exports Reach $46.6 Billion in First Half of Year... 6% Decrease Compared to Previous Year

K-Quarantine Products and Non-Face-to-Face Promising Items Show Significant Growth Trends

Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] Exports by small and medium-sized enterprises (SMEs) in the first half of this year decreased compared to the same period last year due to the impact of the novel coronavirus disease (COVID-19).

According to the "2020 First Half and Second Quarter SME Export Trends" announced by the Ministry of SMEs and Startups on the 22nd, SME exports in the first half amounted to 46.6 billion dollars, showing a 6.2% decrease compared to the same period last year.

SME exports in the second quarter recorded 22.5 billion dollars, down 13.4% year-on-year. Compared to the double-digit decreases in April and May, the decline in June was significantly reduced to a single digit (1.9%).

The Ministry of SMEs and Startups interpreted that the improvement in exports in June of key SME export items such as semiconductor manufacturing equipment and cosmetics was influenced by the economic and consumption recovery in major markets such as the United States and China.

Meanwhile, due to the impact of COVID-19, quarantine products and promising non-face-to-face items showed a sharp increase in exports. SME exports in the first half for medical protective clothing, latex gloves, and hand sanitizers surged overseas demand, reaching 1.18 billion dollars, a 350.1% increase compared to the same period last year.

In particular, diagnostic kits recorded an export amount of 520 million dollars, increasing by 1,130%, and the number of export countries increased by 20.2% to 149 countries compared to last year.

Exports of promising non-face-to-face items also increased compared to last year. Exports reached 2.83 billion dollars, a 35.2% increase compared to the second quarter of last year.

Kang Sungcheon, Vice Minister of the Ministry of SMEs and Startups, said, "Although difficulties for SMEs are expected for the time being amid the global recession caused by COVID-19, the improvement of conditions in the United States and China, the largest export countries, will positively affect SME exports," adding, "We will actively promote export support for K-quarantine products along with expanding the export base through non-face-to-face and online methods."

This content was produced with the assistance of AI translation services.