Taiwan to overtake South Korea in per capita GDP
台灣人均GDP將超越韓國
| TAIPEI (Taiwan News) — Recent estimates indicate Taiwan's per capita gross domestic product will surpass that of South Korea this year, the first time in 22 years.
According to estimates by South Korea's Ministry of Economy and Finance and Taiwan's Directorate-General of Budget, Accounting and Statistics, Taiwan's per capita GDP is expected to reach US$38,066 (NT$1.15 million) this year, surpassing South Korea's US$37,430, per UDN GDP per capita is a key indicator of economic performance. Taiwan's rising technological prominence, fueled by AI, is fueling growth momentum, while South Korea's lack of structural reform has eroded its competitive advantage. In 2018, Taiwan's per capita GDP trailed that of South Korea by approximately US$10,000. However, the gap has narrowed rapidly, with Taiwan's per capita GDP rising to US$33,437 last year, compared to South Korea's US$35,129. Thanks to robust semiconductor exports, Taiwan's economy continues to grow, with real GDP increasing by 8.01% year-on-year in the second quarter, the highest quarterly growth since 2021. In contrast, South Korea's GDP grew by only 0.6% in the second quarter. Many believe the gap between the two countries will continue to widen. Taiwanese authorities have upwardly revised their GDP growth forecast for this year from 3.1% to 4.45%, while the South Korean government forecasts 0.9% growth. Taiwan's GDP per capita is expected to rise to US$41,019 in 2026, surpassing US$40,000 for the first time. South Korea is not expected to reach that mark until 2027. Global demand for semiconductors, AI chips, and technology components is likely to keep Taiwan's economy strong. In contrast, South Korea's economic fundamentals are weakening, with productivity falling in key exports such as automobiles, ships, and memory, with global trade turmoil leading to more headwinds for these industries. |
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| Sean Scanlan Taiwan News, Staff Writer | |
| 2025-09-15 |
