Per‑Capita GDP Rankings Shift in 2025 South Korea’s per‑capita GDP fell to about $36,107, a 0.3 % decline from 2024, while Taiwan rose to roughly $38,748, overtaking Korea for the first time since 2003. The gap is described as clear and lasting rather than a temporary blip. The change coincides with a weaker won and four consecutive years of growth under 3 %[1].

Taiwan’s Policy Cohesion Drives Growth Prospects Taiwan’s steady removal of obstacles—reliable power, water access, flexible labor, and growth‑friendly tax policy—has positioned it to potentially exceed $40,000 per‑capita by 2026. The article credits this coherent policy environment for Taiwan’s readiness to capitalize on the AI boom. By contrast, South Korea’s reforms are portrayed as fragmented[1].

K‑Shaped Economic Structure Limits Korean Income Gains South Korea exhibits a K‑shaped pattern where global exporters such as Samsung Electronics and SK Hynix profit from the chip cycle, while services and SMEs lag behind. Productivity gains remain uneven, leaving many households distant from income growth. Analysts warn that without broader reforms, the economy risks stagnating around a $30,000 ceiling[1].

Seoul’s Fiscal Response May Offer Only Short‑Term Boost The government set a 2 % growth target for 2026 and announced a record budget of 727.9 trillion won to stimulate activity. While the stimulus could lift output briefly, the article argues it cannot raise potential growth given rigid labor rules and fragmented reforms[1].