Small and midsize companies' exports in the first quarter hit $29.8 billion (about 43.97 trillion won), the highest for any first quarter. Despite worsening trade conditions from the Middle East war, strong cosmetics shipments and rising exports to China drove the overall performance.
The Ministry of SMEs and Startups said on the 29th that preliminary data for "first-quarter 2026 SME export trends" showed exports rose 9.1% from a year earlier to $29.8 billion. This is a first-quarter record high. By year, first-quarter exports steadily increased to $26.8 billion in 2023, $27.3 billion in 2024 and $27.3 billion in 2025.
Online exports also showed a clear growth trend. First-quarter online exports expanded year over year with broad increases across key markets including the United States, China and the United Kingdom, surpassing $300 million for the first time on a quarterly basis. The number of exporting small and midsize companies rose 2.7% to 64,706, and the number of online-export corporations also increased 14.4% to 2,735.
By item, cosmetics and semiconductors led the export gains. First-quarter cosmetics exports rose 21.3% to $2.18 billion, marking the highest quarterly performance on record. Despite a 16.1% drop in shipments to the Middle East, double-digit growth rates in the U.S. and European markets lifted the overall results. In particular, online cosmetics exports jumped 74.2% to $200 million.
Semiconductor exports were also strong. First-quarter semiconductor exports rose 55.6% to $1.13 billion. With expanded investment in fifth-generation (5G) mobile networks and AI, demand increased for high-performance communications equipment and cloud server-related products, driving sharp export growth centered on Hong Kong, Taiwan and Vietnam.
By contrast, automobile exports fell. Automobile exports declined 15.2% to $1.47 billion from a year earlier. Due to Russia's higher import-car taxes and strait blockades stemming from the war in the Middle East, exports turned downward for the first time in six quarters.
By country, six of the top 10 export destinations posted increases. Exports rose to China, Vietnam, Hong Kong, Taiwan, India and Thailand, while they fell to the United States, Japan, Mexico and Indonesia.
China, the largest export market, rose 10.6% to $4.88 billion, helped by increased shipments of copper-processed products such as copper foil for smartphone components and by apparel. In contrast, the United States came to $4.47 billion; although cosmetics and auto parts increased, overall exports fell 2.7% due to a decline in power equipment.
Exports to the Middle East were weak. First-quarter shipments to the region fell 16.9% to $1.28 billion, below the average first-quarter level of the past five years ($1.38 billion). Exports of key items such as automobiles, auto parts and cosmetics all decreased.
Sim Jae-yun, director general for global growth policy at the Ministry of SMEs and Startups (MSS), said, "To respond to rapid changes in the trade environment, we need to diversify export markets and products and upgrade the competitiveness of flagship items," and added, "We will swiftly implement support measures, including logistics vouchers, to help small and midsize companies struggling due to the Middle East war."