SME Exports Surpass USD 64 Billion for First Half-Year Record, Driven by K-Beauty and Semiconductors

Cosmetics Exports Reach USD 5.07 Billion
Up 30.7% Year-on-Year
Broad Growth Across Europe, North America, and Latin America

In the first half of this year, exports by domestic small and medium-sized enterprises (SMEs) surpassed 64 billion dollars for the first time, setting a new record. The surge was driven primarily by booming cosmetics exports, fueled by the popularity of K-beauty, along with a strong performance from the artificial intelligence (AI) semiconductor sector.

Olive Young Central Myeongdong Town Store, Jung-gu, Seoul. CJ Olive Young

On July 23, the Ministry of SMEs and Startups announced the '2026 First Half SME Export Trends,' revealing that SME export volume reached 64 billion dollars in the first half of the year, an 11.6% increase compared to the same period last year. The number of exporting SMEs also reached a record high for the first half at 80,490 companies, marking a 2.4% increase year-on-year.

The increase in exports was mainly led by the K-beauty phenomenon. Cosmetic exports in the first half amounted to 5.07 billion dollars, up 30.7% year-on-year, setting a new record high for the first half. Exports to Europe jumped by 62.4% and to North America by 36.8%, while exports to Central and South America surged by 131.9%. Exports to the Middle East also turned to an upward trend in the second quarter, showing signs of recovery.

The semiconductor sector and equipment for semiconductor manufacturing also performed strongly, supported by growing demand for AI. Semiconductor exports rose by 48.3% to 2.28 billion dollars, and semiconductor manufacturing equipment exports increased by 33.2% to 2.03 billion dollars, both recording their highest figures for the first half. In particular, exports rose sharply through global semiconductor production and distribution hubs such as Hong Kong, Vietnam, and Taiwan.

On the other hand, automobile exports fell by 15.2% to 3.31 billion dollars, due to factors such as logistical disruptions caused by the Middle East war. Since the automobile sector is highly dependent on the Commonwealth of Independent States (CIS) and Middle Eastern markets, it was affected significantly by external variables.

By country, China remained the largest export destination at 10.48 billion dollars, a 14.4% increase. This was followed by the United States (9.96 billion dollars), Vietnam (5.63 billion dollars), and Japan (4.73 billion dollars). Among the top ten export countries, exports increased in nine nations except Mexico.

Online exports also continued their growth. In the first half, online export volume reached a record 740 million dollars, up 48.6%, and the number of online export companies jumped by 30.5% to 4,051. In particular, online cosmetic exports soared by 85.3% to 520 million dollars, showing dramatic growth in key markets such as the United States, China, the Netherlands, and the United Kingdom.

Shim Jaeyoon, Director General for Global Growth Policy at the Ministry of SMEs and Startups, commented, "Despite unstable external conditions such as war, SMEs achieved strong export performance by expanding to emerging markets including Central and South America with a diverse range of products, notably K-beauty." He added, "We will actively support the conversion of domestic businesses to exporters and the strengthening of exporting SMEs’ capabilities, so that the success of K-beauty can expand to other product categories."

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