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Higher demand for consumer goods is 'structural shift' in Korea's export strategy: Kotra CEO

Published: 14 Nov. 2025, 17:25

Korea Trade-Investment Promotion Agency (Kotra) CEO Kang Kyung-sung speaks during a press briefing marking his first year in office at a restaurant in Jongno District, central Seoul on Nov. 13. [KOTRA]

The Korea Trade-Investment Promotion Agency (Kotra) CEO Kang Kyung-sung said Korea’s surging exports of consumer goods represent a “structural shift” rather than a passing trend, as the country’s consumer goods exports hit record highs this year, led by cosmetics overtaking food for the first time.

“I’ve recently caught a feel for consumer goods,” said Kang, opening a press briefing marking his first year in office at a restaurant in Jongno District, central Seoul on Thursday.

Kang said Korea has “seized a critical opportunity to rise again through consumer goods,” stressing that “this is not a temporary trend.”

He explained that the growing global demand for Korean consumer goods — driven by the popularity of K-content and K-pop — has shifted from emotional preference to what he called “trust-based consumption.”

“Essential goods that we eat, apply and wear require an emotional connection before purchase decisions are made,” Kang said. “This shift marks a turning point — from markets once dominated by traditional advanced economies like the United States and Europe — where a small country with a population of 52 million and 7.5 million overseas Koreans has begun to win the hearts of people around the world.”

This transformation has already begun to show in export figures. From January to September this year, exports of consumer goods rose 6.6 percent year on year, reaching an all-time high.

Among the top five consumer goods categories, cosmetics are now projected to surpass food products — the usual leader — for the full year, thanks to a growth rate of more than double that of food exports.

“Korea’s export portfolio, once centered on B2B manufacturing, is now diversifying in quality as it expands into B2C consumer goods,” Kang said.

He also noted a shift in tone from global business leaders visiting Korea during the APEC Economic Leaders’ Meeting.

“They expressed strong interest not only in Korea’s manufacturing innovation capabilities but also in consumer goods combined with the Korean Wave,” Kang said. “Consumer goods contribute not only to export growth but also to supply chain stabilization.”

Kang also addressed tariff challenges. Although Korea and the United States reached an agreement on tariffs last month, many small and mid-sized enterprises still face difficulties navigating the complexities of the U.S. tariff system.

A Korea Trade-Investment Promotion Agency (Kotra) office in California is seen in this file photo [JOONGANG ILBO]

“Kotra plans to maintain the highest level of support,” he said, “especially for top-tier supply chain companies, which — unlike large conglomerates — often lack experience entering the U.S. market and could be more vulnerable.”

In February, Kotra launched a “Tariff Response 119” initiative, which has handled 8,400 consultations through October. Help desks set up at 20 overseas trade centers have also played a role in resolving on-the-ground business difficulties.

Looking ahead, Kang said the next year would be dedicated to laying the groundwork for Korea to reach $1 trillion in exports and to become one of the world’s top five export powerhouses.

“If this year was the year of tariff negotiations, next year will be defined by intensified competition over supply chain reorganization,” he said. “We will do our utmost to strengthen supply chain stability through early monitoring and proactive response on critical minerals, diversification of import sources and support for domestic production capacity.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN [[email protected]]