SME Exports Hit Record High... Manufacturing Output Falls 4% in August
Korea SMEs and Startups Institute Releases October Issue of "KOSI Trends in SMEs"
Exports by small and medium-sized enterprises (SMEs) reached a record high in the third quarter of this year. Manufacturing output fell year over year in August.
On October 29, the Korea Small Business Institute released the October 2026 issue of its “KOSI SME Trends” report. First, output at small and medium-sized manufacturers fell 4.0% year over year in August, reversing to a decline as production decreased in industries such as automobiles and rubber and plastics. Output in small and medium-sized service industries continued to grow, rising 2.2% year over year on increased production in professional, scientific and technical services, and information and communications.
SME exports totaled $33.43 billion in the third quarter, up 8.8% from the same period a year earlier and marking a record for any third quarter. This was driven by increased exports of key items such as cosmetics (28.6%) and semiconductors (68.8%), despite fewer operating days (from 71.5 days to 67.5 days) and a slump in automobile exports (-42.4%).
In September, the number of employed people at SMEs with fewer than 300 employees reached 25.819 million, up 69,000 year over year, although the increase was smaller than in the previous month. Employment at businesses with 1-4 workers rose by 117,000 to 10.19 million, while employment at businesses with 5-299 workers fell by 48,000 to 15.629 million.
The number of newly established businesses fell 9.5% year over year to 81,171 in August. By industry, startups declined in manufacturing (-11.2%), services (-10.0%) and construction (-3.2%). However, the number of startups in technology-based industries rose 10.1% year over year to 18,547.
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The Korea Small Business Institute said, “SME exports reached a record high for any third quarter, while service industry output and retail sales continued to grow. However, recovery is uneven across industries, with manufacturing output returning to decline and employment growth slowing.” It added, “SMEs continue to face financial pressure from rising costs and interest rates, making close monitoring necessary.”
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