New products, quality improvement anticipated to drive growth: survey
Korean cosmetics, medical and biotechnology companies are projecting a growth in exports next year on the back of stronger product competitiveness, the Korea Federation of Small and Medium Business’ survey showed Sunday.
About 68.6 percent of the 1,300 small- and medium-sized enterprises, or SMEs, surveyed between Dec. 1-12 said they expect to see an increase in exports next year in comparison to 2025.
In particular, 86.4 percent of cosmetic firms and 86.1 percent of medical and biotechnology firms expressed a positive outlook for 2026 exports.
The responding companies cited new product launches, quality improvement, diversification of export markets, increased exchange rates and economic recovery in major importing countries as reasons for the improved outlook.
As for difficulties in exporting products, about half of the respondents selected China’s low-price strategy expansion, followed by increased volatility of exchange rates, surging costs of raw materials and unpredictability of tariff policies by the United States and Europe.
Despite the tariff policies, the US was the market that SMEs would most want to enter or expand their presence in. Europe, Japan and China were the other top destinations.
The SMEs called for the government to expand its export voucher support packages, set up a responsive system to deal with China’s low-price strategy, bolster diplomacy to cope with tariffs, offer more aid for participating in overseas exhibitions — including the ones in emerging markets — and back up the efforts to handle foreign approvals and regulations.
“Despite the difficult external factors such as more restrictive export regulations by countries, the fact that SMEs are forecasting an export growth through strengthening product competitiveness means a lot,” said Choo Moon-gab, head of the Economic Policy Department at the Korea Federation of Small and Medium Business.
“However, as the ability to cut down costs such as production, logistics, tariffs and lead time will determine a company’s export competitiveness from now, the government should come up with support measures that can help SMEs cope with China’s low-price strategy and prepare competitiveness in the global market.”
hwkan@heraldcorp.com
