Cosmetics and used cars fuel a nearly $79 billion export boom in H1 2025, with online channels showing remarkable growth
South Korea’s small and medium-sized enterprises (SMEs) are once again proving their strength in the global export market. In the first half of 2025, SME exports totaled $56.7 billion (approx. KRW 78.7 trillion), marking the seventh consecutive quarter of growth.
The Ministry of SMEs and Startups (MSS) released the “H1 2025 SME Export Trends” report on August 4, which highlighted cosmetics and automobiles as the top drivers of export performance. Among them, K-beauty stood out with record-high shipments, while used car demand surged, particularly in the Middle East.
According to the data, cosmetics exports increased 19.7% year-on-year to $3.94 billion, the highest ever for a first half. Korean beauty products continue to gain popularity for their quality and innovation, fueling global demand from China to Europe.
Meanwhile, automobile exports soared 73.7% to $3.92 billion, largely driven by the rising global appetite for Korean used cars. High brand recognition and price competitiveness have made Korean vehicles particularly attractive in emerging markets.
The United States remained Korea’s largest SME export destination, with $9.39 billion in exports—a 1.1% increase compared to the same period last year. Growth in key items like cosmetics (13.8%) and electric power equipment (27.4%) continued, while U.S. buyers accelerated inventory stocking ahead of potential tariff hikes.
Taiwan also saw strong performance, with exports rising 23.3% to $1.58 billion, led by semiconductor manufacturing equipment (82.5%), semiconductors (25.5%), and precision chemical ingredients (173.7%).
Online exports surpassed $500 million for the first time, totaling $530 million, up 12.0% from the previous year. Cosmetics accounted for more than half, with $290 million in sales, proving the effectiveness of digital marketing and cross-border e-commerce strategies for SMEs.
An MSS official commented, “K-beauty is driving overall export growth among SMEs. We plan to continue supporting other promising sectors such as fashion and food, while helping beginner exporters start with online channels.”
The report reflects a strategic and sustainable export path for Korean SMEs, underpinned by brand strength, product quality, and adaptive market strategies. Going forward, continued investment in digital trade and product diversification could further cement South Korea’s global export leadership in the SME sector.