SME Exports Reach Record High of $60.5 Billion in First Half... Strong Performance in Semiconductors and Steel Plates

[Asia Economy Reporter Donghyun Choi] Domestic small and medium-sized enterprises (SMEs) recorded export sales of $60.5 billion (approximately 79.3 trillion KRW) in the first half of this year, achieving the highest half-year performance ever.

According to the '2022 First Half SME Export Performance' announced by the Ministry of SMEs and Startups on the 27th, SME exports in the first half of this year increased by 8.8% compared to the same period last year, reaching $60.5 billion. This surpassed the previous record-high exports of $55.6 billion in the first half and $59.9 billion in the second half of last year.

The number of companies achieving exports exceeding $10 million reached 1,025, an increase of 115 companies (12.6%) compared to the same period last year. However, the total number of exporting SMEs was 73,933, a slight decrease of 1.9% compared to 75,386 companies in the same period last year.

Looking at the main export items of SMEs, nine out of the top ten export items increased compared to the same period last year, except for cosmetics. Cosmetics exports decreased by $220 million compared to the same period last year due to sluggish exports to China and a decline in exports to Russia caused by the Ukraine crisis. Semiconductors, steel plates, and other machinery showed favorable trends.

The top export item by export value was plastic products, recording $2.7 billion. This was followed by cosmetics ($2.3 billion), synthetic resins ($2.2 billion), and automobile parts ($2.2 billion). Despite a drop in unit prices, pharmaceutical exports increased by 6.7% compared to the same period last year due to a significant rise in volume. Six items including plastic products, synthetic resins, and semiconductors saw export growth driven by increases in both unit price and volume. Automobile parts and steel plates led exports through unit price increases.

The item with the most notable export increase compared to the same period last year was semiconductors, which rose by $380 million. Steel plates ($350 million) and other machinery ($340 million) also showed significant increases.

Semiconductors experienced strong growth in system semiconductors related to smartphones, automobiles, and home appliances, with exports significantly increasing to the United States, Japan, and Vietnam. Steel plates saw a substantial rise in export value to Mexico and India due to increased raw material prices, a strong finished car market, and recovery in the construction market. Other machinery exports, particularly battery process equipment, increased significantly to China, Vietnam, and the United States, supported by large-scale expansions of overseas factories by electric vehicle battery companies.

Regarding export status by country, exports to the top nine countries, excluding Hong Kong, all showed growth. Germany was excluded from the top 10 countries due to weak demand for diagnostic kits. Meanwhile, exports to Mexico newly entered the top 10, increasing by 20.2% to $230 million compared to the same period last year.

The top export destination for SMEs was China, recording $11.42 billion. This was followed by the United States ($8.98 billion), Vietnam ($6 billion), Japan ($5.6 billion), and Taiwan ($2.04 billion). Exports to the United States increased in pharmaceuticals, machinery, and plastic products, while Taiwan saw a surge in pharmaceutical and other precision chemical product exports due to a spike in COVID-19 cases, with both countries achieving their highest half-year export records. Hong Kong's exports decreased by 5% compared to the same period last year due to lockdowns caused by strict zero-COVID policies, with eight out of the top ten export items including cosmetics and computers declining. Additionally, exports to Russia and Ukraine sharply declined due to the Ukraine crisis that began at the end of February, with exports to Russia down 18.2% and to Ukraine down 65.2% in the first half.

Online export sales reached $350 million, accounting for a still small 0.6% of total exports, but showed encouraging growth of 16% compared to the same period last year. Notably, SMEs accounted for 78.4% of the total domestic online export sales ($450 million), leading the online export sector.

Looking at online export items, exports of computers (218.8%) and other textile products (140.6%) grew significantly compared to the same period last year. Among the top five countries for online exports, Malaysia showed the largest increase with exports rising 138.9% compared to the same period last year, influenced by increased cosmetics exports.

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