South Korea’s gross national income (GNI) per capita outpaced that of neighbors Japan and Taiwan last year, ranking sixth among countries with populations over 50 million. But the country’s path to reaching the $40,000 milestone could be pushed back, as weaker-than-expected economic growth, inflation, and volatile exchange rate trends dampen momentum.
South Korea’s GNI per capita rose 1.2% year-on-year to $36,624 in 2024, according to the Bank of Korea on Mar. 5. In terms of the Korean won, the GNI increased 5.7% to 49.95 million won.
GNI is the dollar value of the total income earned by residents of a country each year, including wages, interest, and dividends. GNI per capita, which is calculated by dividing the country’s GNI by its population, serves as a key indicator of a country’s general standard of living.
Korea’s GNI crossed the $30,000 threshold in 2014 at $30,797 before climbing to $37,898 in 2021. The Korean won’s sharp depreciation in 2022 brought the figure down to $35,229 in 2022, but it rebounded to $36,194 in 2023 and increased further to $36,624 last year, inching closer to the $37,000 mark.
The country’s GNI per capita has surpassed that of Japan and Taiwan for the second consecutive year. Japan’s GNI per capita was estimated at around $34,500 last year, while Taiwan’s stood at $35,188. Among countries with populations exceeding 50 million, Korea ranked sixth, after the United States, Germany, the United Kingdom, France, and Italy.
The BOK explained that Korea’s GNI per capita surpassed Japan’s last year partly because the won was relatively more stable than the yen. According to the BOK, the won depreciated 4.3% against the U.S. dollar last year, while the Japanese yen declined 7.4%. Korea’s 2% GDP growth was also higher than Japan’s 0.1%. Taiwan’s GNI per capita remained in the mid-$35,000 range despite its robust 4.3% GDP growth and relatively stable currency,
The BOK predicts the country might take longer to reach the $40,000 GNI per capita milestone, given rising trade war risks, a more volatile won-dollar exchange rate following the martial law incident, and the Trump administration’s aggressive tariff policies.
“The International Monetary Fund projected Korea’s GNI per capita would reach $40,000 by 2027, but recent exchange rate fluctuations raise concerns that we might not be able to meet that target on schedule.” said a BOK official.
