SME Exports Hit Record Third-Quarter High, Driven by Cosmetics and Semiconductors

Third-quarter SME exports hit $33.4 billion, up 8.8% year on year
Cumulative exports from January to September also rose 9.5% from a year earlier

Driven by the K-beauty and semiconductor booms, small and medium-sized enterprises (SMEs) set a record for third-quarter exports. The increase was fueled by higher cosmetics exports to North America and Latin America, among other regions, and rising semiconductor exports amid a boom in the global AI market.

SME exports in the third quarter reached $33.4 billion, up 8.8% year on year, according to the “Third-Quarter 2026 SME Export Trends” report released by the Ministry of SMEs and Startups on October 26. Cumulative exports from January to September also hit a record high of $96.5 billion, up 9.5% from a year earlier.

The number of exporting SMEs from January to September this year also reached a record high of 90,765, up 1.6% from 89,342 in the same period last year.

Cosmetics exports totaled $2.79 billion in the third quarter and $7.65 billion cumulatively from January to September, up 28.6% and 26.4%, respectively. By region, third-quarter exports to North America ($690 million) rose 33.1% year on year, those to Europe ($670 million) increased 56.1%, and those to the Middle East ($120 million) climbed 12.9%.

Export destinations also diversified. Exports to Latin America totaled $100 million in the third quarter, up 141.3% from a year earlier, and increased 133.3% cumulatively from January to September. Cumulative exports from January to September were $1.71 billion to North America, $1.87 billion to Europe, $310 million to the Middle East, and $220 million to Latin America.

Third-quarter semiconductor exports totaled $1.39 billion, up 68.8% from a year earlier, while exports of semiconductor manufacturing equipment rose 38.3% to $1.104 billion. The ongoing boom in the global artificial intelligence (AI) market pushed both to record highs for a third quarter.

Exports of petroleum products also set a record, rising 29.3% year on year to $660 million in the third quarter, driven by higher global oil prices. Exports to Japan and the Philippines increased sharply, by 27.3% and 157.3%, respectively.

For automobiles, exports to the United Arab Emirates (UAE) fell 66.6% due to the closure of shipping routes amid the Middle East war. Third-quarter exports totaled $1.5 billion, down 42.4%, while cumulative exports from January to September reached $4.8 billion, down 26.4%.

Exports to eight of the top 10 destinations for the third quarter increased, including Hong Kong, the United States, China, Taiwan, India, and Thailand. Exports to the United States, the top destination for the quarter, totaled $5.73 billion. Cosmetics exports rose 14.5% year on year to $560 million, supported by K-beauty brands gaining access to major retail chains. Exports of storage batteries and related materials, including energy storage systems linked to secondary batteries, increased 45.7% to $270 million on stronger demand.

India, with exports totaling $980 million, has seen sustained growth in SME exports, particularly machine tools and other machinery, in line with its policies to develop the manufacturing sector. In contrast, exports to the Middle East fell 7.8% year on year to $1.46 billion amid the impact of the Middle East war. Exports to Saudi Arabia rose 3.7% in the second quarter as expanding local infrastructure investment boosted demand for related equipment, but returned to a downward trend in the third quarter, falling 13.6%, as tensions in the war escalated again.

Online exports by SMEs reached $470 million in the third quarter, up 62.4% year on year. The number of exporting SMEs increased 35.2% to 3,557. SMEs accounted for 65.6% of total online exports.

Cosmetics also stood out in online exports. They accounted for 75.3% of SME online exports, reaching $360 million, up 97.5% year on year. Exports to the United Kingdom surged 729.6%, while those to the Netherlands rose 515.3%, making the two countries key hubs for online cosmetics exports to Europe.

Sim Jaeyun, Director General for Global Growth Policy at the Ministry of SMEs and Startups, said, “Despite the ongoing uncertainty in the external environment, SMEs are performing strongly in exports, led by K-beauty, in key markets such as the United States and emerging markets such as Latin America. We will strengthen various support programs, including export vouchers, overseas certification, and support for joint overseas expansion by large and small companies, and work to minimize export-related difficulties so that SMEs can grow into global companies.”

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