On July 29, export containers are lined up at Pyeongtaek Port in Poseung-eup, Pyeongtaek City, Gyeonggi Province. 2025.7.29/News1
In the first half of this year (January to June), the export value of small and medium enterprises (SMEs) to the United States reached a record high. This was attributed to the increased recognition of K-beauty, which led to a rise in cosmetics sales, as well as attempts to secure inventory in the U.S. ahead of anticipated tariff increases.
On the 4th, the Ministry of SMEs and Startups announced the 2025 mid-year export trends for SMEs. According to the announcement, exports during this period amounted to $56.7 billion, marking a 3.0% increase compared to the same period last year. This marks the seventh consecutive quarter of growth in SME exports since the fourth quarter of 2023 (October to December). The number of exporting SMEs also increased by 2.2% compared to the same period last year, reaching 78,655 companies – the highest ever recorded for the first half of the year.
By product category, cosmetics led the list with $3.94 billion, reflecting a 19.7% increase compared to the same period last year. This is attributed to the expanded recognition of K-beauty beyond its traditional strongholds like the U.S. and China, with rising demand in emerging markets such as the United Arab Emirates (63.6%) and Poland (160.5%). Automobiles followed with $3.92 billion, driven by increased demand for used cars due to high recognition and price competitiveness in regions like the Middle East.
The top export destination was the United States, where the rise in K-beauty recognition boosted cosmetics exports. The Ministry of SMEs and Startups cited a push to secure inventories in anticipation of rising tariffs as a contributing factor. The effect of U.S. tariffs varied by product category: automotive parts saw a 10.3% increase, whereas iron and aluminum decreased by 16.3% and 3.4%, respectively.
Lee Soon-bae, the Director of Global Growth Policy at the Ministry, stated, “K-beauty is driving the overall increase in SME exports,” adding, “We will continue to identify and cultivate other promising categories based on K-software, such as fashion and food.”