Korea's per capita gross domestic product (GDP) is estimated to have fallen for the first time in three years because of low growth and a strong dollar. Reflecting the government's latest projections, Korea's per capita GDP last year likely barely held in the $36,000 range.
By contrast, Taiwan's per capita GDP last year is projected to have surpassed Korea's for the first time in 22 years, and to top $40,000 this year.
As of the 11th, according to the Ministry of Economy and Finance, the Bank of Korea, and the Ministry of Data and Statistics (MODS), Korea's per capita GDP last year is estimated at $36,107, down 0.3% ($116) from a year earlier. It is the first per capita GDP decline in three years.
This reflects the nominal growth rate of 3.8% for last year released in the 2026 economic growth strategy on the 9th, the average won-dollar exchange rate last year of 1,422.16 won, and the total population of 51,684,564 in the data agency's population projections.
Korea's per capita GDP surpassed $30,000 in 2016 and has stayed in the $30,000 range for 10 years. It rose for two straight years through 2018, then fell for two consecutive years through 2020, and increased to $37,503 in 2021 on the back of COVID-19 stimulus and strong exports. But in 2022, it fell again to $34,810 amid rising prices and higher interest rates.
Korea's real GDP growth rate last year is estimated at 1.0%, the lowest since 2020 (-0.7%). On top of that, the won-dollar exchange rate hit a record high, further shrinking GDP in dollar terms.
If the economy grows as the government projects this year, per capita GDP is expected to enter the $37,000 range for the first time in five years. If the won-dollar exchange rate falls into the 1,400-won range, it is projected to rise into the $38,000 range.
◇ Taiwan's per capita GDP last year seen at $38,748… first reversal against Korea in 22 years
Meanwhile, Taiwan's per capita GDP last year appears to have easily surpassed Korea's. In an economic outlook released on Nov. 28 last year, Taiwan's statistics office projected per capita GDP at $38,748. Korea, which overtook Taiwan ($14,041) in 2003 with $15,211, is set to be overtaken for the first time in 22 years.
Taiwan's rapid economic growth is attributed to strong semiconductor exports powered by the artificial intelligence (AI) boom. TSMC, Taiwan's flagship corporations, is the world's largest contract chip manufacturer (foundry), supplying Nvidia and others and playing a key role in the global semiconductor supply chain.
Taiwan's statistics office expects the country's per capita GDP this year to reach $40,921, making it the first to top $40,000 ahead of Korea. The projection calls for four straight years of increases: $32,444 in 2023, $34,238 in 2024, $38,748 in 2025, and then $40,921.