SME Exports Reach $27 Billion in Q1, Up 0.7%
Five Consecutive Quarters of Growth; Number of Exporting Companies Also Rises by 1.6%
US Market Impacted by Weakness in Secondary Battery Equipment
Steel and Aluminum Exports Decline Due to Tariff Effects
According to the "Export Trends of Small and Medium Enterprises for the First Quarter of 2025" announced by the Ministry of SMEs and Startups on May 14, SME exports in the first quarter of this year reached $27 billion, up 0.7% compared to the same period last year. The main factors were the strong export performance of key products such as cosmetics, automobiles, and semiconductor manufacturing equipment, as well as increased demand due to the boom in China's manufacturing sector.
SME exports have maintained a rebound for five consecutive quarters, starting from the first quarter of last year (+0.1%), when they turned positive, through the first quarter of this year.
On a monthly basis, exports slightly declined in January due to a decrease in the number of working days, but increased for two consecutive months in February and March. The number of exporting SMEs also rose to 63,135, up 1.6% compared to the same period last year.
By product category, cosmetics ($1.84 billion, +19.6%) and automobiles ($1.74 billion, +67.4%), the top two export items for SMEs, both recorded their highest-ever quarterly performance. In particular, cosmetics achieved the highest first-quarter export performance ever in the United States and posted double-digit growth rates in eight out of the top ten export destinations for SMEs, demonstrating successful market diversification.
Among the top ten export destinations, exports increased to six countries?China, Japan, Hong Kong, Taiwan, Thailand, and Indonesia?but decreased to four countries: the United States, Vietnam, India, and Mexico.
In the case of the United States, the largest export market for SMEs, cosmetics exports increased. However, exports of secondary battery-related equipment declined due to a temporary slowdown in demand in the electric vehicle industry. As a result, exports of other machinery ($160 million, -47.4%) and electronic application devices ($130 million, -25.6%) also decreased.
Due to the imposition of tariffs on steel, aluminum, and related derivative products by the United States that took effect on March 12, SME exports of these items in the first quarter were also negatively affected. Exports of steel products (including derivatives) fell by 17.8% compared to the same period last year, while exports of aluminum products (including derivatives) declined by 7.6%.
Additionally, an analysis of SME exports in the first quarter for items subject to the U.S. steel, aluminum, and derivative product tariffs implemented on March 12 showed that exports of steel products (including derivatives) decreased by 17.8%, and exports of aluminum products (including derivatives) decreased by 7.6% compared to the same period last year.
Lee Soonbae, Director of Global Growth Policy at the Ministry of SMEs and Startups, stated, "Thanks to the strong performance of key items such as cosmetics, SME exports have maintained an upward trend for five consecutive quarters." He added, "However, as the U.S. tariff measures are now in full effect, we will closely monitor their impact and promptly prepare additional support measures to respond to the tariffs."
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