[Diary Point = Reporter Eom Ju-yong] South Korean small and medium-sized enterprises (SMEs) recorded $33.43 billion in exports during the third quarter of 2026, marking an all-time high for the quarter. That's an 8.8% increase from the same period last year, pushing cumulative exports for January through September to $96.5 billion.
South Korea's Ministry of SMEs and Startups released the Q3 export figures on October 26, and the Korea Institute of Startup and Entrepreneurship Development (KISED) followed with its October SME trend report on October 29, which incorporated the data. The number of SMEs engaged in exports from January to September came in at a provisional 90,765 companies, up 1.6% year-on-year.
Cosmetics and Semiconductors Drove the Growth
The standout category was cosmetics. Q3 cosmetics exports reached $2.79 billion, up 28.6% from a year earlier. Growth wasn't limited to North America and Europe—exports to Latin America also surged, easing what had been a heavy reliance on a few key regions.
Semiconductor exports climbed to $1.39 billion, up 68.8%, while exports of semiconductor manufacturing equipment rose 38.3% to $1.14 billion. Automobile exports, however, fell sharply by 42.4%, weighed down by geopolitical instability in the Middle East and disruptions to shipping routes—highlighting a stark divide across sectors.
Online Export Growth Opens Doors for Consumer Goods Makers
SME exports conducted online totaled $470 million, a 62.4% jump. The number of companies exporting online rose 35.2% to 3,557, with cosmetics accounting for 75.3% of all online export value.
The figures suggest that international shoppers browsing cross-border e-commerce platforms may increasingly encounter products from South Korean SMEs. That said, rising exports don't automatically translate into lower domestic prices or higher household income back in Korea—the real-world impact varies depending on exchange rates, logistics costs, and overseas distribution fees.
Too Early to Call It a Full Economic Recovery
Export performance and domestic economic indicators haven't moved in lockstep. According to KISED, SME manufacturing output in August fell 4.0% year-on-year, and while SME employment rose by 69,000 in September, that was a slowdown from August's gain of 129,000 jobs.
In short, the record export figures mainly signal expanding opportunities for sectors with strong overseas demand, like K-beauty and semiconductors. Meanwhile, industries such as automobiles—more exposed to geopolitical shifts and shipping conditions—continue to struggle. Whether the export momentum spreads to manufacturing and employment more broadly in the fourth quarter remains to be seen in upcoming data.