SME Online Exports Surpass USD 300 Million in Q1 on K-Beauty Boom, Setting All-Time Record

SME Online Exports Jump 38.2% Year-on-Year
Cosmetics Online Exports Surge 74.2%, Reaching USD 200 Million

Driven by the popularity of K-beauty, the online export volume of small and medium-sized enterprises (SMEs) surpassed USD 300 million, achieving the highest quarterly performance on record.

Yonhap News Agency

On May 14, the Ministry of SMEs and Startups announced the "Online Export Trends of SMEs for Q1 2026 (provisional)" and stated that online exports by SMEs reached USD 300 million in the first quarter, a 38.2% increase compared to the same period last year.

SMEs accounted for 70.0% of the total online export volume. The number of SMEs engaged in online exports also set a new quarterly record, rising 14.4% year-on-year to 2,735 companies.

By export item, cosmetics surged 74.2% year-on-year to USD 200 million, setting a new quarterly record. Notably, exports to Europe increased significantly. The United Kingdom saw a 282.8% rise and the Netherlands 133.8%, establishing themselves as major hubs for online cosmetics exports.

By country, the first-quarter online cosmetics export figures (and growth rates) were as follows: United States USD 90 million (60.8%), China USD 19 million (90.8%), United Kingdom USD 18 million (282.8%), Japan USD 16 million (25.3%), and the Netherlands USD 15 million (133.8%).

This trend is attributed both to the popularity of K-beauty and the policy effects of the K-beauty support measures announced in 2025. The online export measures announced in November last year, support for entering overseas online marketplaces, and assistance with establishing and operating dedicated online sales sites have all contributed to increased exports, including processed meat products.

Clothing, accounting for 7.7% of total online exports, recorded USD 23 million thanks to the expansion of overseas online consumption. In China, demand for high-end consumer goods such as baby bibs drove exports to USD 6 million, representing a 96.4% increase.

Computers (6.1% of online exports) reached USD 18 million, with the steady export of photo printers—leveraging proprietary technology and global competitiveness of SMEs—achieving notable results in major markets such as the United States (USD 9 million) and the Netherlands (USD 3 million).

Top 5 Small and Medium Enterprise Online Export Items in the First Quarter of 2026. Ministry of SMEs and Startups

With the increase in exports of diet foods, processed meat products (3.1% of online exports) soared 172.1% year-on-year to USD 10 million. Along with the spread of K-beauty, demand for "inner beauty" (edible beauty) products increased, driving substantial growth in exports of weight-loss products to China.

Stationery and toys accounted for USD 9 million, or 3.1% of online exports. Strong demand for idol merchandise and phone cases in European countries such as Germany and the United Kingdom, as well as robust exports of photo printer film to the United States, contributed to the growth in performance.

The top five countries for SME online export volume in the first quarter were the United States (USD 129 million), China (USD 38 million), Japan (USD 30 million), the United Kingdom (USD 23 million), and the Netherlands (USD 19 million). The countries with the highest export growth rates were the United Kingdom (191.6%), the Netherlands (119.1%), China (43.4%), the United States (25.1%), and Japan (3.1%).

Shim Jaeyoon, Director General for Global Growth Policy at the Ministry of SMEs and Startups, said, "The online market is a sector where SMEs have a strong advantage, and the effects of policy support are translating into overseas expansion for domestic companies. We will actively support domestic companies in expanding into overseas markets and help them go beyond online sales to establish a local presence."

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