Q1 SME Exports Reach Record High... COVID-19 Test Kits Up 462% YoY

SME Exports Reach Approximately 30 Trillion Won in Q1 This Year, Up 12.1% YoY
Performance Driven by Diagnostic Kits and Semiconductor Equipment... 'K-Quarantine' Exports Surge in Europe
Online Exports Up 108.2%... Double-Digit Growth Since January

[Image source=Yonhap News]

[Asia Economy Reporter Junhyung Lee] Small and medium-sized enterprises (SMEs) exports in the first quarter of this year reached an all-time high.

The Ministry of SMEs and Startups announced on the 21st that SME exports in the first quarter of this year recorded $27 billion (approximately 30 trillion KRW), a 12.1% increase compared to the same period last year, achieving the highest first-quarter export performance ever. COVID-19 diagnostic kits and semiconductor equipment drove the performance.

Among the top 20 items accounting for 51.7% of exports, 18 items showed strong export growth. Among them, pharmaceuticals and other precision chemical products increased by 462.1% and 181%, respectively, compared to the same period last year, showing a remarkable upward trend. The surge in diagnostic kit exports was mainly due to countries with widespread COVID-19 such as Europe and South America.

Semiconductors and semiconductor manufacturing equipment increased by 32.9% and 26.1%, respectively, compared to the same period last year. Cosmetics and synthetic resins also showed growth.

Export amount and export growth rate trends over the past 3 years.
[Photo by Ministry of SMEs and Startups]

Among the top five export countries, exports increased to four countries except Japan. China, the United States, and Vietnam saw increased exports of plastics, cosmetics, and semiconductor equipment riding the economic recovery trend. Exports to Germany increased by 195.8% compared to the same period last year, with Germany newly entering the top five export countries. This was due to a surge in demand for domestic quarantine-related products such as pharmaceuticals and medical hygiene products in Germany. Although exports of cosmetics and automobile parts to Japan increased, exports of molds and mechanical components declined, resulting in a decrease in exports in the first quarter.

Online export sales by SMEs are also steadily increasing. Online export sales in the first quarter of this year reached $245 million, a 108.2% increase compared to the same period last year. Online export sales have shown double-digit growth rates every month since January.

Online exports were concentrated in specific items and countries. By item, the share of Hallyu-related consumer goods such as cosmetics (44.7%) and clothing (20.4%) was high. By country, exports to Japan (62.9%), China (14.7%), and the United States (10.7%), where online platforms such as Amazon and Alibaba are well developed, accounted for a high proportion.

Noh Yong-seok, Director of Global Growth Policy at the Ministry of SMEs and Startups, said, "Despite the impact of COVID-19, SME exports are becoming a driving force for economic recovery," adding, "The Ministry will closely monitor factors that could pose risks to exports, such as raw material prices, exchange rates, and freight charges, to maintain this favorable trend."

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