Taiwan's per capita GDP expected to outstrip Korea's for first time in 22 years

Korea’s per capita gross domestic product GDP is projected to be overtaken by Taiwan’s this year for the first time in 22 years.

The streets of Myeong-dong, central Seoul, are filled with tourists on Aug. 31. [YONHAP]

Korea’s gross domestic product (GDP) per capita is projected to be overtaken by Taiwan’s this year for the first time in 22 years.

According to the government and Taiwan’s Directorate General of Budget, Accounting, and Statistics' latest data, Taiwan's GDP per capita was $38,066, while the figure for Korea was $37,430 in 2025.

The comparison was made between Korea’s nominal GDP growth outlook, announced on Aug. 22, and Taiwan’s per capita GDP projection, released on Sept. 10.

Korea’s projection was calculated by applying the government’s expected nominal growth rate of 3.2 percent to last year’s nominal GDP of $1.8746 trillion, resulting in an estimated $1.9345 trillion for this year. That number was then divided by the projected population of 51.69 million.

If realized, Korea would be surpassed by Taiwan for the first time since 2003, when its per capita GDP of $15,211 exceeded Taiwan’s $14,041. The gap between the two economies once widened to nearly $10,000 in 2018, but has since narrowed quickly. Last year, Korea’s per capita GDP was $35,129 compared to Taiwan’s $33,437.

The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed at its fabrication plant in Kaohsiung, Taiwan, June 7, 2025. [REUTERS/YONHAP]

Taiwan’s surge is primarily driven by the rapid growth in semiconductor exports.

Its real GDP expanded 8.01 percent for the second quarter this year from 2024, the fastest pace since the 8.28 percent recorded in the second quarter of 2021. Reflecting the trend, Taiwan’s statistics agency sharply raised its annual growth outlook on Aug. 15 from 3.10 percent to 4.45 percent. The projection for 2026 was set at 2.81 percent.

Korea, by contrast, posted only 0.7 percent quarter-on-quarter growth in real GDP in the second quarter of this year, and 0.6 percent year-on-year — a stark difference from Taiwan.

Domestic consumption has shown signs of recovery in recent months, but external risks are weighing heavily, including concerns over slower exports stemming from tariff hikes by the Donald Trump administration in the United States.

The government projected on Aug. 22 that Korea’s real GDP growth will stand at 0.9 percent this year and 1.8 percent in 2026, both below the Organization for Economic Cooperation and Development’s (OECD) estimate of Korea’s potential growth rate at 1.9 percent.

As a result, Taiwan now appears more likely to reach the symbolic $40,000 mark ahead of Korea. Taiwan’s statistics office projected that its GDP per capita will hit $41,019 in 2026, surpassing the threshold for the first time.

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 JUNG SI-NAE [yoon.soyeon@joongang.co.kr]