Q3 SME Exports Up 5.9% YoY... "All-Time High"

No.1 Export Item Cosmetics
No.1 Export Country United States

In the third quarter of this year, exports by small and medium-sized enterprises (SMEs) reached $28.47 billion, marking a 5.9% increase compared to the same period last year and setting a record high for SME exports in the third quarter.

The Ministry of SMEs and Startups announced on the 30th the '2024 Third Quarter SME Export Trends,' which included this information. The cumulative export amount for the third quarter of this year was $84.56 billion, up 4.7% from the same period last year. The number of SMEs exporting in the third quarter totaled 86,877, a 1.3% increase from the previous year, also marking a record high for the third quarter cumulative period.

Looking at monthly data, SME exports in July and August increased by 13.4% and 7.0% respectively compared to the same months last year, but in September, exports slightly declined due to a reduction in domestic working days caused by the Chuseok holiday. Additionally, online exports reached $290 million, achieving a record high for third quarter online exports, driven by significant increases in cosmetics (+68.0%), computers (+66.9%), and apparel (+36.5%).

In this third quarter, exports increased for eight out of the top ten SME export items. Cosmetics, the top export item, saw a substantial rise in exports to the United States, and diversification of export destinations to Europe and the Middle East contributed to the highest third quarter performance ever recorded. Exports of automobiles and semiconductor manufacturing equipment also continued their strong performance, achieving record third quarter export amounts.

Among the top ten SME export countries in the third quarter, exports increased to seven countries. The United States, the number one export destination, recorded its highest third quarter export performance ever, with five consecutive quarters of growth driven by expanded exports of cosmetics and electrical equipment. Conversely, China, the second largest export market, has experienced a decline in exports of intermediate goods such as plastics and synthetic resins due to increased self-sufficiency in intermediate goods and relocation of production bases, continuing a downward trend for ten consecutive quarters since the second quarter of 2022. Meanwhile, Japan reversed its trend to growth after eight quarters, supported by increased exports of petroleum products and cosmetics.

Choi Won-young, Director of Global Growth Policy at the Ministry of SMEs and Startups, stated, “SME exports have continued their strong performance, setting a record high in the third quarter. However, we will continuously monitor and respond to factors that could impact SME exports, such as the recent crisis in the Middle East.”