Ministry of SMEs and Startups 'Q3 2021 SME Exports'
Record High for Q1-Q3 This Year... 11 Consecutive Months of Growth
"Will Support to Surpass Cumulative 100 Billion Dollars"
[Asia Economy Reporter Kim Bo-kyung] This year, small and medium-sized enterprises (SMEs) have continuously set new records for export performance throughout the first to third quarters. In particular, semiconductor exports in the third quarter surged by 48.2% compared to the same period last year, marking an all-time high, while online exports increased by 42%, mainly in countries with well-developed online platforms.
On the 25th, the Ministry of SMEs and Startups announced the export trends of SMEs for the third quarter of 2021. During this period, SME exports reached $28.8 billion, up 13.2% from the same period last year, marking the largest scale ever recorded for the third quarter since statistics began in 2010. It ranked second on a quarterly basis, following $29.5 billion in the second quarter of last year.
An official from the Ministry stated, "Following record-breaking quarterly export performances in the first and second quarters this year, the third quarter also set a new record, showing that SME exports are continuously achieving new milestones this year." Monthly export performance also maintained growth for 11 consecutive months since November last year.
By product category, plastic products ($1.46 billion) recorded the highest quarterly performance due to increased exports driven by the expansion of electric vehicle battery separators and smartphone display production. Cosmetics ($1.24 billion) showed steady growth in exports to the U.S. and Japan, but turned to a decline from August due to strengthened Chinese import regulations on cosmetics.
The semiconductor market boom and rising international oil prices also contributed to export benefits. Semiconductors ($870 million) and semiconductor manufacturing equipment ($1.09 billion) increased by 48.2% and 47.5% respectively compared to the same period last year. Synthetic resins recorded $1.01 billion in exports, up 44.4% year-on-year, due to rising export prices and increased demand for packaging containers and vinyl. This is the highest performance since the fourth quarter of 2014.
Used car exports, which had been blocked due to a shortage of car carriers, normalized, resulting in a 61.5% increase to $710 million in the automobile sector.
Looking at exports by country, China, which has expanded investments to achieve semiconductor production self-sufficiency, ranked first overwhelmingly with $6.27 billion. The U.S. ($3.88 billion) saw 16 consecutive months of growth due to strong performance in plastic products, cosmetics, and machinery and equipment categories.
Among the top 10 export countries, Taiwan ($820 million) and Thailand ($650 million) showed growth rates exceeding 20%. Taiwan's growth was influenced by strong semiconductor-related products, while Thailand saw increased demand for pharmaceuticals and other fine chemical products due to the spread of COVID-19.
Online exports in the third quarter recorded $290 million, a 42% increase compared to the same period last year. Online exports have shown double- and triple-digit growth rates every month since January last year, and the cumulative performance for the first to third quarters ($850 million) increased by 74.9%.
Online exports tend to focus on consumer goods related to the Korean Wave compared to total exports, and export destinations are concentrated in countries with well-developed global online platforms. The top countries for online exports were Japan, the U.S., China, and Singapore, in that order.
O Gi-woong, Director of Global Growth Policy at the Ministry of SMEs and Startups, said, "In the third quarter of 2021, SME export performance continued to break records following the first half of the year. We will spare no effort to support surpassing $100 billion by the fourth quarter and achieving the highest performance ever."
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