K-Beauty Exports Surge to Record $64 Billion in First Half of 2026

According to the Ministry of SMEs and Startups, the export value of small and medium enterprises (SMEs) for the first half of 2026 reached a record $64 billion, a year-on-year increase of 11.6%. This marks the highest number of exporting SMEs at 80,490, reflecting a 2.4% growth over the same period.

The cosmetics sector remains a key driver of this growth, achieving an export value of $5.07 billion, representing a 30.7% increase. The surge is particularly noted in Europe (+62.4%) and North America (+36.8%), with exports to emerging markets in Latin America growing notably by 131.9%. Exports to the Middle East have also shown signs of recovery, increasing by 9.9% in the second quarter.

While other sectors saw a decline, such as automobile exports, which fell by 15.2% to $3.31 billion due to logistical challenges stemming from regional tensions, the technology sector thrived. Semiconductor exports hit $2.28 billion—a growth of 48.3%—due to the global AI semiconductor boom, and equipment for semiconductor manufacturing reached $2.03 billion, an increase of 33.2%.

Among the ten largest export countries for Korean SMEs in the first half of 2026, nine, including China ($10.48 billion, +14.4%) and the US ($9.96 billion, +3.2%), saw exports rise despite various trade risks.

Exports have been bolstered by the growth of online sales, which have surged by 48.6% year-on-year to $740 million, with 4,051 SMEs involved, marking the highest performance in the first half year.

The online cosmetics market saw exports soar by 85.3%, reaching $520 million, with significant growth recorded in the US (+57.4%) and China (+75.6%).

Shin Jae-yoon, a director at the Ministry of SMEs and Startups, indicated that despite global uncertainties, SMEs are demonstrating resilience, particularly in K-Beauty and expanded markets. He emphasized the need for continued diversification of product offerings and markets to sustain this growth.