The Ministry of SMEs and Startups reported on the 14th that small and medium-sized enterprises (SMEs) recorded over $300 million in online exports during the first quarter, marking a historic high for the sector.

Specifically, the online export revenues of SMEs rose by 38.2% year-on-year to reach $300 million, constituting a significant 70% of the total online exports. This underscores the integral role of online channels in boosting exports for SMEs and highlights a strategic pivot towards e-commerce in international trade.

Among these exports, cosmetics dominated, accounting for 65.8% with a remarkable year-on-year increase of 74.2% to $200 million, establishing record figures for the quarter. This surge reflects both the enduring popularity of K-Beauty and the initial impacts of the supportive policies announced in 2025.

Significantly, exports to key markets such as the U.S. (+60.8%) and China (+90.8%) soared, with European markets like the U.K. (+282.8%) and the Netherlands (+133.8%) also experiencing dramatic growth. This geographical diversification not only signals a solid demand for K-beauty products but also indicates strategic positioning for SMEs in tapping into varied international markets.

The 2025 export strategy, which includes initiatives for entering overseas online marketplaces and developing proprietary online sales sites, has also been effective in promoting other categories, such as processed agricultural products, which have seen an uptick in exports.

The apparel sector, accounting for 7.7% of total online exports, reached $23 million, driven by increased international online consumer demand. Particularly notable is the Chinese market's heightened interest in premium consumer goods, as evidenced by a 96.4% rise in exports to $6 million.

Meanwhile, processed meat products, which represented 3.1% of online exports, skyrocketed by 172.1% year-on-year to achieve $10 million, fueled by growing interest in inner beauty products, particularly weight loss supplements targeted at China.

In summary, Jeong Sim-jae, Director of Global Growth Policies at the Ministry, indicated that the online market is a stronghold for SMEs, as the results of policy support translate into deeper market penetration. Moving forward, there is a commitment to enhance the global footprint of domestic firms, advancing from online sales into physical market presence.