A foreign visitor takes notes on product information at a cosmetics trade fair held at COEX in Gangnam-gu, Seoul. [Yonhap]
A foreign visitor takes notes on product information at a cosmetics trade fair held at COEX in Gangnam-gu, Seoul. [Yonhap]

Riding the global K-beauty wave, South Korea's small and medium-sized enterprise exports surpassed $60 billion for the first time in the first half of this year.

Exports by small and medium-sized enterprises (SMEs) reached $64 billion in the first half of 2026, up 11.6 percent from a year earlier, according to the "First-Half 2026 SME Export Trends" report released Thursday by the Ministry of SMEs and Startups. The number of exporting SMEs also rose 2.4 percent to 80,490 companies, the highest figure ever recorded for a first-half period.

The result surpassed the previous record of $59.1 billion set in the first half of 2022. SME export competitiveness expanded despite headwinds including global economic uncertainty and a deteriorating situation in the Middle East.

Cosmetics were by far the biggest driver of export growth. Cosmetics exports climbed 30.7 percent from a year earlier to $5.07 billion, setting a new first-half record. Sales expanded into emerging markets — exports to Europe surged 62.4 percent, North America rose 36.8 percent, and Latin America jumped 131.9 percent. In the United States, content-driven commerce and the expansion of local retail pop-up stores supported the gains. In Europe, growth was underpinned by the broadening of distribution networks centered on logistics hubs in Poland and the Netherlands.

Semiconductors and semiconductor manufacturing equipment also posted record results. Semiconductor exports rose 48.3 percent to $2.28 billion, while semiconductor manufacturing equipment grew 33.2 percent to $2.03 billion. Exports expanded sharply across Asian markets — particularly Hong Kong, Vietnam and Taiwan — driven by rising global demand for AI semiconductors and higher unit prices.

Measurement, control and analysis instruments rose 30.2 percent from a year earlier to $1.28 billion, setting a first-half record on the back of stronger exports to Vietnam and Taiwan.

Automobile exports, however, fell 15.2 percent to $3.31 billion, hurt by logistics disruptions stemming from conflicts in the Middle East. Auto parts edged up 1.4 percent, maintaining modest growth supported by expanded vehicle production in the United States.

By destination, China remained the top export market at $10.48 billion, followed by the United States at $9.96 billion, Vietnam at $5.63 billion and Japan at $4.73 billion. Exports increased in nine of the top 10 destination countries, with Mexico the sole exception. Hong Kong posted the sharpest growth among major markets, surging 61.8 percent on strong semiconductor and precious-metals exports.

Online exports also showed notable momentum. First-half online exports reached $740 million, up 48.6 percent from a year earlier and a record high. The number of companies exporting online rose 30.5 percent to 4,051. Online cosmetics exports led the charge, surging 85.3 percent to $520 million, with strong growth recorded in major markets including the United States, China, the Netherlands and the United Kingdom.

The Ministry of SMEs and Startups identified reducing dependence on a narrow range of export items as a key challenge going forward. Cosmetics, semiconductors and semiconductor manufacturing equipment are currently driving export growth, but sustained efforts to diversify product categories and open new markets in Latin America and Southeast Asia will be essential to navigate shifts in the global trade environment and mounting geopolitical risks. The government plans to step up support, focusing on helping domestic-oriented companies enter export markets and expanding online export channels.

"We achieved strong results based on the expansion of K-beauty and other diverse product categories into emerging markets, even amid an unstable external environment including armed conflicts," said Shim Jae-yun, director general for global growth policy at the Ministry of SMEs and Startups. "We will continue to nurture exporting companies and strengthen their capabilities so that K-beauty's success can spread to other product categories."


boo@heraldcorp.com