Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Korea’s GNI per capita stagnant in $36,000 range as Japan, Taiwan surge ahead – Full Analysis.
Containers are stacked at Pyeongtaek Port in Pyeongtaek, Gyeonggi, on March 1. [YONHAP]
Korea’s gross national income (GNI) per capita barely moved last year, remaining in the $36,000 range as Japan’s surged ahead on the back of a calculation adjustment and Taiwan’s extended its lead thanks to the semiconductor boom.
The nominal GNI per capita in Korea reached $36,855 in 2025, up 0.3 percent from $36,745 in 2024, according to a report on income earned by residents of Korea in the fourth quarter and entirety of 2025 that was released by the Bank of Korea (BOK) on Tuesday.
GNI per capita — the total earned income divided by the population — rose markedly more when measured by the local currency, coming in at 52.42 million won ($35,800), up 4.6 percent from 50.12 million won a year earlier.
Korea’s GNI per capita has remained in the $36,000 range for three straight years, following $36,195 in 2023 and $36,745 in 2024. The country first surpassed the $30,000 mark in 2014 but has yet to cross the $40,000 threshold.
Per capita GNI climbed to $37,898 in 2021, but growth slowed afterward.
The weakness of the won against the dollar also weighed on GDP growth, with the local currency sliding 4.3 percent. Korea’s nominal GDP reached 2.66 quadrillion won in 2025, up 4.2 percent from the previous year, while in dollars, the GDP fell 0.1 percent to $1.87 trillion.
![Dollar banknotes are seen in this illustration taken on March 10, 2023. [REUTERS/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/03/10/d3434a86-655b-4063-9f9f-0a8eebe74025.jpg)
Dollar banknotes are seen in this illustration taken on March 10, 2023. [REUTERS/YONHAP]
Korea’s economic growth also slowed. The real GDP rose 1 percent in 2025, according to preliminary data, the lowest level since 2020, when the economy shrank 0.7 percent during the Covid-19 pandemic. The economy also contracted in the fourth quarter of last year, with the GDP falling 0.2 percent from the previous quarter.
The rate lagged behind neighboring countries with historically comparable growth.
Japan regained its lead over Korea after falling behind in 2023, when Korea’s GNI per capita reached $36,195, slightly higher than Japan’s $35,793. Korea also remained ahead in 2024, when it recorded $36,745 compared with Japan’s $36,030.
“Japan updated the base year used to calculate its economic statistics, which made its economy appear larger and lifted its GNI per capita into the low $38,000 range, above Korea’s,” said Kim Hwa-yong, head of the BOK’s national accounts division, noting that the new reference year provided a statistical revision that offered a boost to the calculation.
Currency movements also played a role. The yen strengthened about 1.3 percent against the dollar and Taiwan’s currency by 2.9 percent.
Taiwan, meanwhile, recorded a sharp rise in national income driven by booming semiconductor and AI industries. GNI per capita jumped from $35,531 in 2024 to $40,585 in 2025, surpassing $40,000 for the first time, according to Taiwan’s Directorate General of Budget, Accounting and Statistics.
![A CH-47SD Chinook transport helicopter hoists a giant Taiwan flag as it flies over downtown Taipei during a flag flyby rehearsal ahead of the country’s National Day in Taipei, Taiwan, on Oct. 8, 2025. [EPA/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/03/10/b01d4866-2b13-4902-8f66-5e9496b866e6.jpg)
A CH-47SD Chinook transport helicopter hoists a giant Taiwan flag as it flies over downtown Taipei during a flag flyby rehearsal ahead of the country’s National Day in Taipei, Taiwan, on Oct. 8, 2025. [EPA/YONHAP]
Taiwan’s information technology manufacturing sector accounts for roughly three times the share of its economy compared to Korea, which allowed Taiwan to benefit more from the global semiconductor boom.
Korea’s global income ranking could also change. Among countries with populations of 50 million or more, Korea ranked sixth in national income per capita in 2024 after the United States, Germany, Britain, France and Italy. Japan’s renewed lead raises the possibility that Korea could fall to seventh place.
“Assuming that exchange rates remain stable, current trends suggest Korea’s GNI per capita could exceed $40,000 by 2027,” the BOK’s Kim said.
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 KIM WON [[email protected]]