According to Yonhap News,

In the first half of this year, small and medium-sized enterprises (SMEs) in Korea achieved an export volume of USD 56.7 billion (approximately KRW 78.67 trillion), maintaining a growth momentum for seven consecutive quarters.

Notably, cosmetics led the way in exports, followed by automobiles, driving the overall increase in SME exports.

On August 4th, the Ministry of SMEs and Startups (MSS) released a report titled 'Export Trends of Small and Medium-Sized Enterprises in the First Half of 2025.'

Quarterly SME export values made a turnaround to a 1.6% year-on-year increase in Q4 2023, and the growth continued with a 5.5% increase in Q2 2024, marking a seventh consecutive quarter of positive growth.

By product category, cosmetics topped the list with USD 3.94 billion in exports, a 19.7% increase compared to the first half of last year, marking the largest export volume for the first half in history.

Automobile exports also saw a significant rise of 73.7%, totaling USD 3.92 billion. The MSS attributed this growth to the surge in used car demand, particularly in the Middle East, due to high awareness and price competitiveness.

By country, the United States was the largest export destination, with USD 9.39 billion in exports, a 1.1% increase.

Key export items such as cosmetics (13.8%) and power equipment (27.4%) showed strong performance. The anticipated rise in tariffs may have prompted businesses to secure inventory in the U.S. in advance, which likely influenced these figures.

Online exports also grew by 12.0%, reaching USD 530 million, surpassing the USD 500 million mark for the first time. Cosmetics, with exports totaling USD 290 million, played a leading role in this growth.

An MSS official commented, "K-beauty (Korean cosmetics) is driving the overall increase in SME exports, and we plan to grow other promising sectors like fashion and food. For beginner exporters, we will encourage them to start by utilizing online export channels."


aayyss@yna.co.kr
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Source: Yonhap News (August 4, 2025)

** This article was translated from Korean.