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🇰🇷 South Korea /Technology

South Korean SMEs Hit Record Exports in Q1, Driven by Cosmetics and Semiconductors

From Hankyoreh · (6m ago) Korean Positive tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • South Korean small and medium-sized enterprises (SMEs) achieved a record-high first-quarter export value of $29.8 billion, a 9.1% increase year-on-year.
  • Cosmetics and semiconductors were key drivers, with cosmetics exports rising 21.3% and semiconductor exports surging 55.6% due to increased AI investment.
  • Despite global challenges like the Middle East conflict, China remains the top export destination, while automotive exports declined due to logistical disruptions.

Hankyoreh reports a significant achievement for South Korea's small and medium-sized enterprises (SMEs), with first-quarter exports reaching an all-time high of $29.8 billion. This robust performance, a 9.1% increase from the previous year, underscores the resilience and adaptability of Korean businesses despite ongoing global uncertainties, including the conflict in the Middle East.

The article highlights the stellar performance of the cosmetics and semiconductor sectors. Cosmetics exports, in particular, saw a remarkable 21.3% jump, driven by strong demand in the US and Europe. This surge in beauty products signals a growing global appetite for Korean-made goods, reflecting the soft power of K-beauty.

Despite significant difficulties such as the Middle East war, exports to Asia and Europe, centered on key export items like cosmetics, increased, achieving the largest performance ever for the first quarter.

— Shim Jae-yoonDirector of Global Growth Policy at the Ministry of SMEs and Startups, commenting on the record-breaking export figures.

Semiconductors also played a crucial role, with exports skyrocketing by 55.6%. This growth is attributed to the increased demand for high-performance communication equipment fueled by the global expansion of artificial intelligence (AI) investments. This demonstrates Korea's continued strength in the high-tech sector, a vital component of its economic engine.

While China maintained its position as the top export market, the article also notes a decline in automotive exports. This dip is linked to factors such as tax increases in Russia and logistical disruptions caused by the ongoing conflict in the Middle East. The government, through the Ministry of SMEs and Startups, has pledged to support affected businesses, including through logistics vouchers, to mitigate the impact of these global challenges. This proactive stance aims to ensure that Korean SMEs can navigate these turbulent times and continue their growth trajectory.

We plan to quickly execute the logistics vouchers prepared with the supplementary budget to resolve the difficulties of SMEs suffering from the war.

— Shim Jae-yoonDirector of Global Growth Policy at the Ministry of SMEs and Startups, outlining government support measures.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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