First Quarter SME Exports Hit All-Time High at $29.8 Billion

Up 9.1% Year-on-Year; Cosmetics Lead with 21.3% Growth
March Exports to the Middle East Drop 49.5% from Last Year

In the first quarter, South Korea's small and medium-sized enterprises (SMEs) achieved a record high in export value. This was driven by increased exports to Asia and Europe, centered on key export items such as cosmetics, despite the impact of the Middle East war.

On April 29, the Ministry of SMEs and Startups released the "Export Trends of SMEs for the First Quarter of 2026." In the first quarter of this year, SME exports rose by 9.1% year-on-year to 29.8 billion dollars. Online exports reached 300 million dollars, surpassing the 300 million-dollar mark for the first time in any quarter, with significant increases to the United States (+25.1%), China (+43.4%), and the United Kingdom (+191.6%). The number of SME exporters was 64,706, up 2.7% from a year earlier, and the number of SMEs exporting online also increased by 14.4% to 2,735.

By export item, cosmetics, a major export product led by SMEs, reached a record quarterly high of 2.18 billion dollars, with double-digit growth rates in exports to the United States (+35.1%) and Europe (+43.7%), despite a decline in exports to the Middle East. Online cosmetics exports also surged by 74.2% year-on-year to 200 million dollars, with notable increases in exports to the United States (+60.8%), China (+91%), and the United Kingdom (+282%).

Semiconductor exports continued their strong performance, driven by increased investment in 5G and artificial intelligence (AI), as companies equipped with technologies related to high-performance communication equipment and cloud servers saw significant export growth in Hong Kong (+214.8%), Vietnam (+35.4%), and Taiwan (+82.5%). In contrast, automobile exports turned to a decline for the first time in six quarters due to increased import tariffs imposed by Russia and the blockade of straits resulting from the Middle East war.

Among the top 10 export destinations for SMEs in the first quarter, six countries—China, Vietnam, Hong Kong, Taiwan, India, and Thailand—saw increased exports compared to the same period last year. On the other hand, exports to four countries—the United States, Japan, Mexico, and Indonesia—declined. Exports to China, the largest export destination for SMEs, increased by 10.6% year-on-year, driven by strong exports of copper processed products such as copper foil for smartphone components and increased clothing exports. In the case of the United States, although exports of cosmetics and auto parts increased, overall exports decreased by 2.7% compared to the same period last year due to a base effect from power equipment and other items.

First-quarter exports to the Middle East fell by 16.9% year-on-year to 1.28 billion dollars due to the Middle East war, falling below the five-year first-quarter average. Exports of major items such as automobiles, auto parts, and cosmetics also declined. Notably, in March alone, during the first month after the outbreak of the Middle East war, exports to the Middle East totaled 290 million dollars, a 49.5% drop compared to the same period last year.

Shim Jaeyoon, Director General for Global Growth Policy at the Ministry of SMEs and Startups, stated, "To cope with the rapidly changing trade environment, it is necessary to diversify export markets, expand product variety, and advance core export products, and we will expand related support accordingly." He added, "We plan to swiftly execute measures such as logistics vouchers prepared through the supplementary budget to help SMEs facing difficulties due to the Middle East war."

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