68% of SMEs Expect Export Growth Next Year... Cosmetics, Medical, and Bio Sectors Most Optimistic

Korea Federation of SMEs Announces Results of '2026 SME Export Outlook Survey'

It has been found that the number of small and medium-sized enterprises (SMEs) expecting exports to 'increase' in 2026 is more than twice the number of those expecting exports to 'decrease' compared to this year.

On the 21st, the Korea Federation of SMEs announced the results of its '2026 SME Export Outlook Survey,' which included these findings. The survey was conducted from December 1 to December 12, targeting 1,300 exporting SMEs.

According to the survey, 68.6% of SMEs expect exports in 2026 to 'increase' compared to 2025, while 31.4% expect exports to 'decrease.' In particular, companies exporting cosmetics (86.4%) and medical and bio products (86.1%) had the most positive outlook for exports in 2026.

The main reason cited for expecting an increase in exports (multiple responses allowed) was 'improved product competitiveness, such as new product launches and quality enhancements,' chosen by 47.1% of respondents. This was followed by export market diversification (29.8%) and increased price competitiveness due to factors such as exchange rate rises (21.6%).

Among SMEs expecting a decrease in exports, 49.3% (multiple responses allowed) pointed to 'intensifying low-price competition from China' as the main challenge. This was followed by ▲ increased exchange rate volatility (44.6%), ▲ sharp rises in raw material prices (37.0%), and ▲ uncertainty in US and EU tariff policies (35.0%).

When asked about countermeasures in the event of declining export performance (multiple responses allowed), respondents cited ▲ export market diversification (28.2%), ▲ quality improvements or new product launches (23.0%), and ▲ reducing production costs such as labor and materials (21.8%).

Despite tariff policies, the market that exporting SMEs most want to newly enter or expand into is the United States (21.0%). This was followed by Europe (15.2%), Japan (10.6%), and China (10.6%).

The most in-demand government priority for strengthening export competitiveness was 'expanding support for the export voucher program' (53.5%). This was followed by ▲ establishing a response system to China's low-price competition (35.8%), ▲ strengthening diplomacy to address US and EU tariffs (35.1%), ▲expanding support for participation in overseas exhibitions (including emerging markets) (31.5%), ▲and support for responding to overseas certifications and regulations (27.2%).

Chu Moon-gap, Director of Economic Policy at the Korea Federation of SMEs, said, "It is significant that SMEs are forecasting export growth by strengthening product competitiveness, even though external conditions such as export regulations in various countries remain challenging." He added, "However, as a company's ability to reduce total costs-including production, logistics, tariffs, and lead times-will become the key to export competitiveness going forward, the government should prepare support measures to help SMEs respond to China's low-price competition and enhance their competitiveness in the global market by reducing costs."