SME Exports Hit Record High of $118.6 Billion Last Year... Automobiles and Beauty Surpass Previous Year's Performance

SME Annual Exports Up 6.9% in 2025
Record-High Performance in Automobiles, Cosmetics, and Electronic Application Devices
Top Export Destinations: China, United States, Vietnam, and Japan

Last year, exports by small and medium-sized enterprises (SMEs) reached a record high of 118.6 billion US dollars. In particular, exports of automobiles and cosmetics each surpassed the previous year's performance for the third consecutive year.

Following President Donald Trump’s signing of a proclamation imposing a 25% tariff without exceptions on steel and aluminum products imported into the United States, and his announcement that tariffs on automobiles and semiconductors are also under consideration, export vehicles and containers are awaiting shipment at Pyeongtaek Port, Gyeonggi Province, on February 13, 2025. Photo by Kang Jinhyung

On January 28, the Ministry of SMEs and Startups announced the "2025 SME Export Trends (provisional figures)." Last year's export value increased by 6.9% compared to the previous year, and the second to fourth quarters saw the highest quarterly performance ever recorded. The number of exporting SMEs was 98,219, up 2.5% from the previous year (95,815).

Among the top 10 export items, automobiles ranked first with exports of 9 billion US dollars, a 76.3% increase from the previous year. Cosmetics, ranked second with 8.3 billion US dollars, grew by 21.5%, driving the growth of SME exports. In addition, items such as semiconductor manufacturing equipment, semiconductors, and electronic application devices also showed strong export performance.

For automobile exports, demand for Korean used cars and increased brand awareness led to a 106.0% increase in exports to Kyrgyzstan and a 107.2% increase to Kazakhstan, both CIS countries. Exports of used cars to the Middle East, including the United Arab Emirates (up 91.2%), also showed an upward trend.

Cosmetics exports diversified beyond major markets such as the United States and China to the European Union and the Middle East, driven by the popularity of K-beauty. Export growth trends show a 77.6% increase to the European Union and a 54.6% increase to the Middle East. The number of export destinations increased by seven to 204 countries, and the export value reached 8.32 billion US dollars, up 21.5%, marking the highest annual performance ever.

Despite the impact of tariffs, exports of automobile parts to North America saw a slight increase (0.6%), but exports to Japan, another major market, turned to a decline for the first time in four years due to decreased sales performance of local finished car manufacturers.

The top 10 export destinations for SMEs were China, the United States, Vietnam, and Japan, in that order. Among these, exports to five countries-including China, Japan, Hong Kong, and Taiwan-increased. China regained its position as the largest export destination, driven by the spread of K-fashion and lifestyle content through local social media platforms.

Despite uncertain export conditions such as tariff risks, the United States ranked second overall as cosmetics and electric power equipment (such as transformers) achieved record-high export results. Exports of steel, which is subject to tariffs, decreased by 8.6% due to lower local demand, but aluminum exports increased by 9.3% as they replaced reduced volumes from other major export countries to the US.

In the Middle East and CIS countries, exports of consumer goods such as K-beauty and food products by SMEs grew significantly, thanks to the spread of Korean Wave content and changes in global consumption trends.

Meanwhile, in 2025, SME online exports reached a record high of 1.1 billion US dollars, up 6.3% from the previous year (1.04 billion US dollars). SMEs accounted for 75.6% of total online exports, leading the sector.

Among the top online export items, cosmetics exports to Europe surged, with the United Kingdom up 261.7% and the Netherlands up 138.0%. Apparel exports to Greater China, including China (up 109.8%) and Taiwan (up 149.8%), increased, offsetting declines in exports to the United States and Japan. The number of SMEs engaged in online exports rose sharply to 4,392, compared to 3,821 the previous year.

Lee Soonbae, Director General for Global Growth Policy at the Ministry of SMEs and Startups, stated, "Despite challenging external factors such as global protectionism, SME exports in 2025 achieved record-high results thanks to expanded export support policies and the efforts of businesses." He added, "There are significant concerns in the SME sector about the prolonged risks of tariffs and other trade issues. We will proactively respond to external uncertainties to ensure the continued recovery of SME exports."