Exports of small and medium-sized enterprises (SMEs) in South Korea achieved record-breaking third-quarter results in industries such as cosmetics, automobiles, and electronic application devices.
According to the Ministry of SMEs and Startups on the 12th, SME exports in the third quarter of this year amounted to $27.46 billion (approximately 36.31 trillion KRW), a 0.9% decrease compared to the same period last year. This decline is attributed to the global high interest rate trend and the economic downturn in China. However, the decrease in SME exports was relatively smaller compared to large enterprises (-12.7%) and mid-sized companies (-6.2%).
The performance varied by industry. Cosmetics exports reached $1.4 billion, increasing by 24.7% year-on-year, achieving the highest third-quarter performance ever. Thanks to the popularity of K-Beauty, major countries such as the United States and Japan, excluding China, as well as emerging markets including the European Union (EU), the Middle East, and the Commonwealth of Independent States (CIS), showed double-digit growth rates, making cosmetics the top export item in the third quarter. During the same period, automobile exports rose 32.1% to $1.1 billion, also marking the highest third-quarter performance ever. Additionally, electronic application devices and other machinery increased by 11.3% and 26.2% respectively compared to the previous year, achieving record third-quarter results.
On the other hand, exports of semiconductor manufacturing equipment fell 18.6% year-on-year to $900 million. Due to the semiconductor industry's downturn, this sector experienced the largest decline among major industries. Following this, synthetic resins (-8.7%), semiconductors (-8.6%), and mechanical components (-1.7%) also saw reduced performance.
By export destination, exports to China amounted to $4.63 billion, down 11.1% from the same period last year. Exports to Japan (-8.8%), Taiwan (-7.5%), Indonesia (-7.0%), and Russia (-21.2%) also decreased. In China’s case, the industrial upgrading policy and increased self-sufficiency in intermediate goods led to a noticeable decline in intermediate goods exports from Korean SMEs. For Russia, the economic downturn caused by the war and strengthened export controls by the Korean government resulted in a significant drop in exports. Conversely, exports to the United States (7.7%), Vietnam (0.2%), India (10.6%), and Mexico (3.5%) performed well.
The number of SMEs participating in exports in the third quarter was 85,916, a 2.5% increase compared to the same period last year. New export companies increased by 7.9%, while companies that stopped exporting decreased by 3.5%, indicating an improving trend in SME export indicators.
Choi Won-young, Director of Global Growth Policy at the Ministry of SMEs and Startups, stated, "Despite the difficult external environment, SME export indicators are improving with a smaller decline in exports compared to large and mid-sized companies and an increase in new export companies. We will steadily promote an SME-led export drive to continue the positive export growth of SMEs, which turned positive from August, into the fourth quarter."
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