KOTRA chief calls for diversifying exports beyond semiconductors, eyes 20% consumer goods share

KOTRA President Kang Gyeong-seong said South Korea must move beyond its heavy reliance on semiconductors to sustain long-term export growth as the country edges closer to joining the world's top five exporters. He said KOTRA would actively support consumer goods industries — including cosmetics, food and pharmaceuticals — to drive export diversification.

Speaking at a press briefing in Hanoi, Vietnam, on Thursday local time, Kang said an export structure skewed toward semiconductors "is not desirable in the medium to long term," adding that "diversifying products, markets and export players is what will make South Korea's exports more resilient."

The remarks came a day after the Ministry of Trade, Industry and Energy released its June trade data showing that South Korea's monthly exports surpassed $100 billion for the first time in history. The milestone made South Korea only the fourth country in the world — after Germany, China and the United States — to record monthly exports above that threshold. Analysts say South Korea could break into the top five global exporters if strong momentum holds through the second half of the year.

Kang said he had set the top-five export goal both when he took office and at his one-year anniversary. "I thought it would take about two to three years, but results are coming faster than expected, and I'm pleased," he said. He added that while a near-doubling of semiconductor exports was a major driver, exports excluding semiconductors also rose 16 percent.

Kang said diversifying South Korea's export industries is essential for stable growth, particularly emphasizing the role of consumer goods. He said KOTRA is actively supporting companies looking to expand overseas, including through the 2026 Hanoi Hallyu Expo. KOTRA projects that exports of the top five consumer goods categories will exceed $50 billion this year for the first time in history.

"Manufacturing is sensitive to economic cycles and exchange rates, but if consumer goods grow alongside it, the export portfolio can be far more stable," Kang said. He added that consumer goods accounted for 6.4 percent of total exports last year, and that KOTRA aims to raise that share to between 15 and 20 percent.

He said consumer goods — food, beverages, cosmetics and apparel — are ultimately industries shaped by national image and brand. "The spread of hallyu has drawn global consumers to Korean cosmetics and food, and that is creating a virtuous cycle where cultural interest translates into actual export growth," he said.

Kang also said export markets and the companies driving them must be diversified. To that end, KOTRA opened new trade offices in Monterrey, Mexico, and Georgia last year, and plans to establish additional offices in Kyrgyzstan and Costa Rica.

KOTRA also plans to strengthen its economic security function. "We are now in an era of economic security," Kang said, noting that he has told staff the agency will take on economic security responsibilities beyond trade promotion. He said KOTRA restructured its organization last year to establish a dedicated economic security and trade division.

Kang said that when Middle East conflicts disrupted naphtha supply last year, KOTRA leveraged its overseas trade network to help secure 870,000 metric tons of naphtha across 29 separate deals. "We want to focus on stabilizing supply chains to support Korean industry and on attracting overseas talent," he said.

Meanwhile, KOTRA has been stepping up support for domestic consumer goods exporters on multiple fronts. In April, it jointly opened a K-consumer goods matching center with Douyin at a bonded logistics center in Qingdao's West Coast New Area in China, holding an export briefing and consultation session to mark the launch. Last month, it co-hosted the 2026 Korea Day with the South Korean Embassy and Korean Cultural Center in Hungary at Crystály Színtér in Budapest.