Korean Media: South Korea's Per Capita GDP Reverses for the First Time in 3 Years ... Taiwan Surpasses South Korea for the First Time in 22 Years

Per Capita GDP in 2025 Barely Holds at $36,000 ... Low Growth Combined with "Currency Surge" Impact

According to preliminary statistical data, South Korea's per capita GDP fell for the first time in three years in 2025. The reasons behind this are low growth failing to expand the economic pie, and a sharp depreciation of the Korean won (currency surge) leading to a reduction in the dollar value of GDP.

On the 11th, according to the Ministry of Planning and Finance of South Korea and the Bank of Korea, South Korea's provisional per capita GDP for 2025 is $36,107, a decrease of 0.3% compared to 2024 ($36,223). This is the second time in three years that South Korea has experienced negative growth after a drop of 7% in 2022 (from $37,503 to $34,810).

In 2014, South Korea entered the era of $30,000 per capita GDP, but failed to break through $40,000 for 12 consecutive years. Meanwhile, Taiwan, a major competitor, surpassed $30,000 in 2021 and is expected to break through $40,000 five years later, forming a stark contrast. According to the International Monetary Fund (IMF), South Korea will first enter the $40,000 era in 2028. In 2025, Taiwan's per capita GDP exceeded South Korea for the first time in 22 years. Taiwan's per capita GDP in 2025 is approximately $38,748.

The main reason for South Korea's stagnation around $30,000 per capita GDP is low growth. South Korea's economic growth rate in 2025 was only 1.0%, the lowest in five years since 2020 (-0.7%). At the same time, the depreciation of the Korean won also negatively affected GDP calculations. The average exchange rate of the Korean won to the US dollar in 2025 was 1,422.16 won (approximately 6.8 RMB), an increase of 58.18 won (a 4.3% decline in value) compared to the previous year, meaning more won are needed to exchange for the same amount of US dollars.

Regarding this, Professor Kim Da-jong from Sejong University said: "If the exchange rate, which reflects the country's economic strength, remains unstable, the Korean people will become increasingly poor. It is urgently needed to lift restrictions, enhance industrial competitiveness, and make South Korea an attractive investment country."

Source: Chosun Ilbo

Original article: toutiao.com/article/1854444411747785/

Statement: This article represents the personal views of the author.