Korean SME exports hit record $33.4B in Q3

South Korean small and medium-sized enterprises exported $33.4 billion in goods in the third quarter of 2026, a record for any third quarter and an 8.8% increase from a year earlier. The strong quarter lifted cumulative exports for January through September to an all-time high of $96.5 billion, up 9.5% year-on-year. SME exports have set record performances for the relevant quarter for six consecutive quarters since the second quarter of the previous year.

The number of exporting SMEs also reached a record level. Over January to September, 90,765 SMEs shipped products abroad, a 1.6% increase from a year earlier. Within this base, 9,469 SMEs exported cosmetics, up 6.3% year-on-year, with both new entrants and continuing exporters at all-time highs.

Cosmetics stood at the forefront of SME exports. Third-quarter cosmetics exports were $2.79 billion, up 28.6% from a year earlier and the highest third-quarter level on record, accounting for 8.4% of total SME exports. For January to September, cosmetics exports totaled $7.65 billion, up 26.4% and another record for that period.

Cosmetics made the largest contribution to the overall increase in SME exports. Of the roughly $2.7 billion rise in total SME exports in the third quarter, cosmetics accounted for about $620 million, or around 23%. Market diversification has been notable, with third-quarter cosmetics exports of $690 million to North America, up 33.1%, and $670 million to Europe, up 58.6%.

Exports to emerging regions have also expanded. Cosmetics exports to Latin America reached $100 million in the third quarter, up 141.3%. On a January–September basis, Europe at $1.87 billion and North America at $1.71 billion were key cosmetics markets, while cosmetics accounted for 75.3% of SME online exports in the third quarter.

Beyond cosmetics, semiconductor-related products recorded sharp gains. Third-quarter semiconductor exports rose 68.8% year-on-year to $1.39 billion, while exports of semiconductor manufacturing equipment climbed 38.3% to $1.14 billion. Both categories hit their highest third-quarter levels on record.

Online channels have become a major growth driver. Third-quarter SME online exports totaled $470 million, up 62.4% from a year earlier. Cosmetics dominated this segment with $360 million in online exports, almost doubling in a year with 97.5% growth, and SMEs accounted for 65.6% of all online exports, with 3,557 firms selling overseas online, up 35.2%.

Battery-related items also participated in the uptrend in key markets. Exports of storage batteries and related materials to the United States rose 45.7% to $270 million, supported by demand linked to secondary batteries, including energy storage systems.

By country, the United States overtook China as the largest market for Korean SME exports in the third quarter. Exports to the U.S. rose 19.6% year-on-year to $5.73 billion. Within that, cosmetics exports reached $560 million, up 14.5%, supported by expansion into major local retail channels.

Exports to China increased 12.9% to $5.43 billion, while shipments to Hong Kong surged 76.1% to $1.77 billion and exports to India rose 12% to $980 million, helped by stronger demand for machinery. Exports to North America and Europe as regions increased 33.1% and 58.6%, respectively, and Latin America rose 141.3% in the third quarter.

In contrast, exports to the Middle East fell 7.8% to $1.46 billion, and autos were a notable weak point. Third-quarter automobile exports, including used cars, declined 42.4% to about $1.5 billion, with cumulative auto exports for January to September down 26.4% to $4.8 billion. The slowdown in auto and Middle East shipments contributed to a deceleration in the overall SME export growth rate to 0.9% in September after double-digit gains in July and August.