SEOUL, January 11 (AJP) Stronger economic growth and a stable currency allowed Taiwan to overtake South Korea in per capita gross domestic product last year, with the gap expected to persist this year, according to government data and economic forecasts released Sunday.
South Korea’s per capita GDP in 2025 is estimated at $36,107, down 0.3 percent from the previous year, marking its first decline in three years. The drop reflects weak growth and a sharp depreciation of the won, government and central bank data showed.
South Korea’s dollar-denominated nominal GDP fell 0.5 percent to $1.87 trillion, the first contraction since 2022, while real GDP growth slowed to an estimated 1.0 percent, its weakest pace since the pandemic-era contraction in 2020. The average won-dollar exchange rate rose to 1,422.16 last year, the weakest annual level on record.
Taiwan, by contrast, recorded robust growth led by semiconductor exports, particularly those linked to artificial intelligence demand. Taiwan’s statistics agency estimates the island’s per capita GDP reached $38,748 in 2025, surpassing South Korea for the first time in 22 years.
Taiwan’s real GDP growth estimate for 2025 was revised up sharply to 7.37 percent, while the New Taiwan dollar remained relatively stable, strengthening slightly against the U.S. dollar over the past year.
According to Taiwan’s official outlook, per capita GDP is expected to exceed $40,000 this year, extending a four-year upward trend. Major global investment banks project Taiwan’s real GDP growth at around 4.0 percent in 2026 on continued strength in AI-related exports.
South Korea’s per capita GDP is expected to recover modestly this year if economic growth improves to government-target of around 2 percent. Based on government projections, per capita GDP could rise to about $37,900 if exchange rates remain near last year’s levels, or to roughly $38,500 if the won strengthens to around 1,400 per dollar.
South Korea first surpassed Taiwan in per capita GDP in 2003 and maintained a lead for more than two decades. The reversal highlights diverging economic trajectories, with Taiwan benefiting from its central role in the global semiconductor supply chain, led by Taiwan Semiconductor Manufacturing Co. (TSMC).
The International Monetary Fund in October projected South Korea’s global ranking in per capita GDP will slip to 37th in 2025 from 34th in 2024, while Taiwan's goes up to 35th from 38th.
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