Korea Federation of SMEs Announces Results of 'SME Export Status and Market Entry Plan Survey'
Exports of small and medium-sized enterprises (SMEs) in the second half of this year are expected to increase compared to the same period last year, led by 'K-Beauty' and other sectors.
The Korea Federation of SMEs announced the results of the 'SME Export Status and Market Entry Plan Survey' on the 28th. The survey was conducted from July 10 to 15, targeting 304 exporting SMEs. According to the survey, 28.6% of SMEs expect exports to 'increase' in the second half of this year compared to the same period last year, which is 9.1 percentage points higher than the 19.5% of SMEs that expect a 'decrease.'
In particular, the sectors expected to see export growth higher than the average (28.6%) were food (41.3%), beauty and cosmetics (39.1%), and medical bio (34.1%).
The main reason for expecting export growth (multiple responses allowed) was 'increased demand for products,' cited by 69.4% of companies, followed by the impact of diversification of export countries and products (27.1%), quality improvement (16.5%), and economic recovery in partner countries (15.3%).
The biggest export risk was 'rising raw material prices,' cited by 38.5%. Other risks included difficulty in finding new buyers (17.4%), logistics disruptions such as increased freight costs (14.8%), and the spread of non-tariff barriers such as certification (11.2%).
Regarding tasks the government should pursue to expand SME exports in the future (multiple responses allowed), 78.6% of companies wanted 'expanded support for export marketing such as overseas exhibitions.' This was followed by support for responding to non-tariff barriers such as certification (56.3%), support for export diversification including new market development (54.3%), and logistics cost support (50.0%).
The top country for SME export performance was the 'United States,' with 25.3% of responses, followed by China (11.5%), Vietnam (8.9%), Japan (6.6%), and Russia (5.6%).
Meanwhile, 69.4% of SMEs responded that they 'plan to enter new countries,' and the countries considered for new entry (multiple responses allowed) were the United States (20.9%), Japan (12.8%), China (11.8%), Vietnam (9.5%), and India (9.0%). For next year's exhibition and consultation dispatch preferences (multiple responses allowed), the 'United States' was the most preferred at 38.5%, followed by Japan (11.8%), Vietnam (11.2%), and China (11.2%).
Choo Moon-gap, Head of the Economic Policy Division at the Korea Federation of SMEs, said, “As export growth is expected in the second half of this year centered on K-Beauty and K-Food, preparations must be made to ensure no disruption in exports through export diversification, overseas certification, and logistics cost support,” and “The Korea Federation of SMEs also plans to expand participation in exhibitions focusing on countries such as the United States and Japan, where SMEs wish to enter.”
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