South Korea overtakes Japan for first time

South Korea’s “Chosun Ilbo” recently reported that according to data released on the 5th, in 2023, South Korea’s per capita gross national income (GNI) exceeded 36,000 US dollars, surpassing Japan for the first time, ranking sixth among countries with a population of more than 50 million, after the United States, Germany, the United Kingdom, France and Italy. Japan fell to seventh place due to the depreciation of the yen.

According to the report, the main reason for the increase in GNI per capita was that South Korea’s actual trade loss fell from 17 trillion won (about 89.6 billion yuan) to 11.3 trillion won. According to experts, this is the result of rising commodity prices driven by the growth of chip demand, and the reduction of trade losses caused by the decline in international oil prices. Korea’s export and import sectors are affected by chip and crude oil prices, respectively.

According to the Bank of Korea, GNI per capita is expected to exceed $40,000 in the next few years. But the report also points out that there are many variables. If the won depreciates like the yen, GNI per dollar will also decline. In addition, the emergence of private consumption, construction and equipment investment downturn will also have a negative impact.