South Korea's Per Capita Income to Surpass $40,000 for the First Time

South Korea's per capita national income is projected to surpass $40,000 this year for the first time ever. National income, calculated by dividing the income earned by citizens over a year by the total population, is a representative indicator of a country's economic standing. According to the Bank of Korea, per capita gross national income stood at $36,963 last year and rose 21.8% in the first half of this year. Unless the won weakens sharply in the second half, the country is likely to enter the $40,000 range for the full year—a new record 12 years after crossing the $30,000 mark in 2014.

South Korea's per capita national income has grown from $67 in 1953, right after the Korean War, to the doorstep of $40,000. The country achieved this remarkable growth, buoyed by robust exports of high-tech manufactured goods such as semiconductors. As of last year, only five countries with populations over 50 million—including the United States and Germany—had reached a per capita national income of $40,000.

The government has unveiled a vision centered on a 3% potential growth rate, a top-four global ranking in exports, and a per capita national income of $50,000. Deputy Prime Minister and Finance Minister Lee Hyoung-il said, "With 3% growth materializing this year, per capita national income is also expected to step up to the $40,000 range."

Despite the improving indicators, however, the warmth of the economic recovery has yet to spread across the domestic economy. A semiconductor-led recovery is widening gaps between sectors, deepening the so-called 'K-shaped polarization.' The economy as felt by ordinary citizens and young people remains sluggish.