K-beauty drives record South Korean SME consumer exports
· UPIJune 15 (Asia Today) -- Exports of four promising consumer product categories by South Korean small and medium-sized companies reached a record $9.58 billion during the first five months of 2026, led by strong overseas demand for Korean cosmetics, food and fashion.
The Ministry of SMEs and Startups said Monday that combined exports of cosmetics, agricultural and fishery products, household and baby goods and fashion apparel increased 16.4% from the same period last year.
The growth substantially exceeded the 9.3% increase recorded by overall small and medium-sized enterprise exports during the period.
Cosmetics remained the largest export category for South Korean SMEs, rising 28.6% to $4.09 billion.
Monthly cosmetics exports set records for three consecutive months from March through May, pushing shipments during the five-month period to their highest level on record.
Exports of agricultural and fishery products increased 16% to $2.68 billion.
Gim, the Korean name for dried seaweed, and other seaweed products accounted for 21.2% of food exports. Shipments of mackerel and other seafood also increased as exporters secured alternative demand in Europe and Africa.
Fashion apparel exports rose 13.6% to $850 million.
The sector expanded beyond golf wear and other sports-casual products as emerging designer labels and lifestyle clothing brands entered markets across China, Hong Kong, Taiwan and other Chinese-speaking regions.
Household and baby products were the only category to decline, falling 1.7% to $1.97 billion.
The figures also showed progress in diversifying export destinations.
Small businesses maintained sales in their main markets, including the United States, China and Japan, while exports to Europe increased 39.6% and shipments to Latin America rose 66.1%.
Cosmetics recorded particularly rapid growth in Europe. Exports to the Netherlands surged 205%, while shipments to Britain increased 92.2% and exports to Poland rose 88.7%.
Cosmetics exports to Latin America, led by demand from Brazil, increased 153.5%.
The results came despite expanding trade protectionism and instability associated with the war in the Middle East, which have increased uncertainty for international businesses.
"Despite the difficult external environment, small and medium-sized enterprises are overcoming the crisis by diversifying their markets based on their variety and innovation," First Vice Minister Roh Yong-seok said.
"We will provide full policy support so that the success formula of K-beauty can be expanded to other promising consumer product sectors, including food and fashion," Roh said.
The South Korean government has been seeking to develop Korean consumer brands as new export engines while reducing the country's dependence on a limited number of major markets.
The ministry said the strong gains in Europe and Latin America demonstrate that smaller Korean brands are increasingly reaching consumers beyond their traditional markets in the United States and East Asia.
-- Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260615010004980