Seoul:Korean small and medium-sized enterprises (SMEs) achieved a record-breaking export figure of USD 33.4 billion in the third quarter of 2026, marking an 8.8% increase from the previous year. This figure represents the highest third-quarter total on record. From January to September, total exports hit USD 96.5 billion, reflecting a 9.5% increase. The number of exporting SMEs grew by 1.6% to a provisional record of 90,765.
According to Ministry of SMES and Startups, exports increased for eight of the sector's 10 largest overseas markets, including the United States, China, and India. Online sales also saw significant growth, providing smaller businesses with additional opportunities to reach international consumers. However, ongoing conflict in the Middle East continued to impact shipments to the region, particularly affecting automobile exports.
In the cosmetics sector, SME exports rose 28.6% year on year, reaching USD 2.79 billion in the third quarter. For the first nine months of the year, these exports totaled USD 7.65 billion, a 26.4% increase. Notably, third-quarter cosmetics exports to North America increased by 33.1% to USD 690 million, while shipments to Europe climbed 58.6% to USD 670 million. The Middle East saw a 12.9% rise to USD 120 million, and Latin America experienced a 141.3% surge to USD 100 million, underscoring the expanding global demand for Korean beauty products.
The semiconductor industry also contributed to the record exports, with sales of semiconductors and related equipment climbing 68.8% to USD 1.39 billion and 38.3% to USD 1.14 billion, respectively. Additionally, petroleum product exports reached a third-quarter high of USD 660 million, a 29.3% increase, driven partly by higher international oil prices. However, automobile exports declined by 42.4% to USD 1.5 billion due to disrupted trade routes in the Middle East, with shipments to the United Arab Emirates falling 66.6%.
The United States emerged as the largest export market for Korean SMEs in the third quarter, with shipments rising 19.6% to USD 5.73 billion. Cosmetics exports to the U.S. increased by 14.5% to USD 560 million. In China, the second-largest market, exports rose 12.9% to USD 5.43 billion, while Vietnam and Japan followed with exports of USD 2.9 billion and USD 2.57 billion, respectively.
Exports to India grew by 12.0% to USD 980 million, supported by the country's push to expand domestic manufacturing. Meanwhile, exports to the Middle East decreased by 7.8% to USD 1.46 billion, although the decline narrowed compared to earlier quarters, as geopolitical tensions continued to affect trade.
SME online exports also saw a substantial increase of 62.4% year on year, reaching USD 470 million in the third quarter. Cosmetics accounted for 75.3% of these online exports, with sales nearly doubling to approximately USD 360 million, highlighting the growing importance of e-commerce for Korean beauty products.
Shim Jae-yoon, Director General for Global Growth Policy at the Ministry of SMES and Startups, stated, "Despite continued uncertainty in overseas markets, Korean SMEs are achieving strong export results, led by K-beauty, both in established markets such as the United States and in emerging markets including Latin America." The ministry plans to enhance export initiatives and support programs to help SMEs expand into foreign markets.
The export figures are based on Korea Customs Service clearance data and may be updated after annual trade statistics are finalized in February 2027 and company classifications in April 2027.
Source Ministry of SMES and Startups