In the first half of this year, small and midsize enterprise exports continued to grow, led by cosmetics and semiconductors, setting an all-time high. Export value surpassed $60 billion for the first time, and the number of SMEs engaging in exports topped 80,000.
According to the "first-half 2026 SME export trends (preliminary)" released by the Ministry of SMEs and Startups on the 23rd, SME exports in the first half rose 11.6% from a year earlier to $64 billion (about 94.093 trillion won). This surpassed the previous record high of $59.1 billion in the first half of 2022, marking the largest performance ever. The number of exporting SMEs increased 2.4% from a year earlier to 80,490 companies.
This export growth was driven by high-tech industries centered on K-beauty and AI Semiconductor. Cosmetics exports reached $5.07 billion in the first half, up 30.7% from a year earlier, setting a new record for a first half. Growth continued in Europe and North America, and exports also rose sharply in emerging markets such as Latin America.
The recovery of the global semiconductor market on the back of expanded AI investment also supported SME exports. Semiconductor exports climbed 48.3% year over year to $2.28 billion, and semiconductor manufacturing equipment increased 33.2% to $2.03 billion, both achieving record first-half performances. Exports surged mainly to global semiconductor distribution and back-end hubs such as Hong Kong and Vietnam.
By contrast, automobile exports fell 15.2% from a year earlier to $3.31 billion due to factors such as logistics disruptions stemming from the Middle East war. The high dependence on the Middle East and the Commonwealth of Independent States (CIS) markets was cited as a factor.
By country, China and the United States led the increase in exports. China maintained its position as the top export destination, recording $10.48 billion (14.4%) on the back of strong exports of semiconductor manufacturing equipment, precision chemical raw materials, and apparel.
The United States also posted a record first-half performance of $9.96 billion (3.2%), as cosmetics exports rose thanks to the expansion of online and offline sales channels, including content commerce and local pop-up stores, despite changes in the trade environment such as the tariff and de minimis abolition.
In contrast, exports to the Middle East fell 12.6% to $2.72 billion due to the impact of the war. Most major items, including automobiles, auto parts, and cosmetics, declined.
Online exports have emerged as a new growth engine for SMEs. First-half online exports rose 48.6% year over year to $740 million, and the number of SMEs exporting online increased 30.5% to 4,051, both hitting record first-half highs.
In particular, online cosmetics exports surged 85.3% year over year to $520 million, driving growth in online exports. The United States and China, as well as key markets such as the Netherlands and the United Kingdom, posted broad-based gains.
Sim Jae-yun, director general for global growth policy at the Ministry of SMEs and Startups (MSS), said, "We will actively support transforming domestic-market companies into exporting companies and strengthening the global competitiveness of exporting companies so that K-beauty's successful experience can spread to other industries," adding, "We will concentrate policy capabilities so that SMEs can grow into the key players leading Korea's exports."