SMEs' Top Export Item 'K-Beauty' Achieves Record Performance Through May

Exports of Four Major Promising Consumer Goods by SMEs Rise 16.4% Year-on-Year

Cosmetics, the largest export item among small and medium-sized enterprises (SMEs), set new monthly records for three consecutive months from March to May, achieving the highest-ever cumulative export performance for the month of May. Exports of the four major promising consumer goods produced by SMEs—cosmetics, fashion and apparel, agri-fisheries products, and daily living & infant goods—increased by 16.4% year-on-year.

The Ministry of SMEs and Startups announced on June 15 the 'Provisional Export Status of the Four Major Promising Consumer Goods by SMEs (Cumulative: January-May 2026)'. As of the end of May, exports of these four major promising consumer goods by SMEs reached USD 9.58 billion, significantly outpacing the overall SME export growth rate (+9.3%) for the same period.

In addition, the share of these four major promising consumer goods in total SME exports expanded to 18.4%. The number of exporting companies also rose to 27,000, up 5.2% from the same period last year, surpassing the overall growth rate for SME exporters (+2.1%). These four major promising consumer goods are now being recognized as the key product groups driving SME export growth.

Looking at export markets, strong growth continued in traditional core markets such as the United States, China, and Japan, while significant market diversification was seen in Europe (+39.6%) and Latin America (+66.1%). Despite challenging conditions such as ongoing wars in the Middle East, SMEs have maintained export growth by leveraging product excellence and diversifying their markets.

By product category, cosmetics—the largest export item for SMEs—recorded USD 4.09 billion in exports through May, marking a 28.6% year-on-year increase. The strong global reputation for high-quality basic skincare and makeup products has extended to items such as mask packs and body care products. In addition to robust growth in core markets such as North America and Asia, exports to Europe (including the UK and the Netherlands, +61.1%) and Latin America (including Brazil, +153.5%) have also surged.

For fashion and apparel, in addition to exports centered on established designer brands and sports casual wear, the rising global interest in K-fashion (such as idol and street fashion) has enabled SMEs with competitive new designer brands and lifestyle wear to drive export growth. Particularly, while China remains the largest export destination (accounting for 43.4%), demand has also expanded in Greater China markets such as Hong Kong (+31.9%) and Taiwan (+20.0%), thereby broadening the export base.

For agri-fisheries products, seaweed and related products drove growth as major export items (accounting for 21.2%), while other seafood such as mackerel (+43.4%) saw strong export performance, especially in Europe (+73.3%) and Africa (+99.3%), as alternative demand increased in these regions.

Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, stated, "Despite the difficult external environment, including the expansion of global protectionism and ongoing wars, SMEs are setting new export records every day by leveraging diversity and innovation. Ultimately, these results demonstrate that diversifying export markets with outstanding products is the key to overcoming such crises." He added, "K-beauty has become a new successful export model for SMEs, based on their innovation and diversity, as well as a harmonious ecosystem with large companies' production and distribution infrastructure. We will expand policy support to apply the K-beauty success formula to other sectors such as food and fashion."

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