Taiwan Set to Overtake South Korea in Wealth on AI-Led Boom

Taiwan AI-led boom is driving GDP per capita to surpass South Korea’s for the first time in over two decades, with output projected at USD38,000 in 2025. The central bank raised its growth forecast to 4.55%, outpacing South Korea’s 0.9%, and placing Taiwan’s per capita GDP ahead of Korea and well above Japan, though still trailing Singapore. The surge has been fuelled by Taiwan Semiconductor Manufacturing Co. (TSMC) and Foxconn, which dominate global demand for advanced chips and AI servers. The New Taiwan dollar has also become Asia’s best-performing currency this year, amplifying gains. South Korea, more reliant on broader industries such as petrochemicals, has struggled as Samsung Electronics fell behind in AI-related technologies, leaving Taiwan as the region’s AI powerhouse.