Record Export by SMEs Amid COVID-19... Surpassing the All-Time High of $105.2 Billion

Increase in Export Venture Companies, Pharmaceuticals Drive Performance
Cosmetics Rapidly Grow to 2nd Place... Hallyu and K-Beauty Popularity
Electric Vehicle Exports Grow 23 Times Compared to 2017

[Asia Economy Reporter Kim Bo-kyung] Exports by small and medium-sized enterprises (SMEs) have surpassed pre-COVID-19 performance, breaking the all-time high of $105.2 billion.

On the 30th, the Ministry of SMEs and Startups announced that as of the previous day, SME export volume exceeded the record set in 2018 ($105.2 billion), the highest since statistics began.

This new record was made possible by the global economic recovery, which expanded the base of our export companies, supported by the active performance of strong small enterprises.

First, the number of export venture companies (based on venture company certification) reached 9,497, a 42% increase compared to October 2010. Compared to a 16% increase in the number of exporting SMEs during the same period, the proportion of venture companies among export companies was high. In particular, pharmaceuticals such as diagnostic kits have ranked first among venture company export items since last year, driving performance.

Until October this year, small business owners exported $9.03 billion (9.5% of total SME exports), and startup companies exported $18 billion (18.9%), expanding the base of our exporting SMEs.

Additionally, the number of companies exporting over $10 million was 1,834, with export volume reaching $49.9 billion, marking the highest level since statistics began and playing a pivotal role in SME exports.

Among key items, cosmetics rapidly grew from 62nd in export items in 2010 to 2nd this year, fueled by the Korean Wave and the popularity of K-Beauty. Exports of semiconductor manufacturing equipment and pharmaceuticals also grew about fourfold. Another high-growth item is processed foods, with exports of processed agricultural, marine, and livestock products increasing by 161% compared to 2010, reaching $1.5 billion.

Moreover, automobile exports, mainly used cars, have maintained a top 10 ranking, with electric vehicles (including ultra-small cars) showing potential growth by recording $22.32 million this year, a 23-fold increase since their first export in 2017.

The major export countries have remained largely unchanged over the past decade, including China, the United States, Vietnam, and Japan. However, Germany, which had been outside the top 10 for the past 10 years, rose to 7th place due to a surge in diagnostic kit exports.

On this day, Minister Kwon Chil-seung of the Ministry of SMEs and Startups visited six exporting SMEs and the export performance excellence company, Phreenics, for a meeting. Phreenics is a photo printer manufacturer that was selected as the best seller in the photo printer category on Amazon last year.

At this meeting, they encouraged the achievement of the export record, listened to the difficulties faced by exporting SMEs, and discussed policy directions to maintain the growth trend in export performance. Minister Kwon stated, "We will strive to reflect the voices from the field of exporting SMEs in future export policies to expand this momentum."