South Korea’s Per Capita Income Rises Slightly in 2025 as Weak Won Limits Dollar Gains

South Korea’s Per Capita Income Rises Slightly in 2025 as Weak Won Limits Dollar Gains​

Per Capita GNI Stays in the $36,000 Range​

South Korea’s per capita income recorded only marginal growth in 2025, as the depreciation of the Korean won against the US dollar offset stronger gains in local currency terms.

Preliminary data released by the Bank of Korea on Tuesday shows that the country’s nominal per capita gross national income (GNI) reached $36,855 in 2025, marking a 0.3 percent increase from the previous year. Despite the rise, the figure remained within the $36,000 range for the third consecutive year.

Stronger Growth in Local Currency Terms​

When measured in Korean won, income growth was significantly stronger.
Per capita GNI rose 4.6 percent year on year to 52.42 million won in 2025, reflecting solid domestic income expansion.

However, the gains were diluted when converted into US dollars due to currency weakness.

The Korean won weakened by 4.3 percent against the dollar in 2025, driven by imbalances in foreign exchange supply and demand and increased overseas securities investments by local investors.

GDP Expands in Won but Falls in Dollar Terms​

South Korea’s nominal gross domestic product (GDP) expanded 4.2 percent from a year earlier to 2,663.3 trillion won in 2025.

In dollar terms, however, GDP declined slightly by 0.1 percent to $1.87 trillion, reflecting the impact of the weaker currency.

Income Growth Trend Since 2014​

South Korea’s per capita income has seen fluctuating momentum over the past decade.

The figure first crossed $30,000 in 2014 and continued rising, approaching $38,000 in 2021. It then dropped to the $35,000 range in 2022 before recovering to $36,195 in 2023.

Growth moderated afterward, with 1.5 percent expansion in 2024 followed by the 0.3 percent increase recorded in 2025.

Comparison With Regional Peers​

Among economies with populations exceeding 50 million, South Korea ranked sixth globally in per capita GNI, behind the United States, Germany, Britain, France, and Italy.

Taiwan recorded per capita GNI of $40,585 in 2025, supported by strong growth linked to the semiconductor sector. Japan’s per capita GNI also moved into the $38,000 range after a revision of its base year in December.

Outlook for Future Income Growth​

According to the central bank, South Korea’s per capita GNI could surpass $40,000 by 2027, provided that exchange rate movements do not significantly impact dollar conversions.