New IMF forecasts have intensified discussion in Seoul over semiconductor strategy, industrial policy and whether South Korea’s growth model is losing ground to Taiwan’s
By Don Huh / Contributing reporter in Seoul
Taiwan’s overtaking of South Korea in GDP per capita is not a temporary anomaly, but the result of deeper structural problems in the South Korean economy says Chang Young-chul, the former CEO of Korea Asset Management Corp. Chang says that while it reflects Taiwan’s own gains, it also highlights weakening growth momentum in South Korea. As design and foundry capabilities become more important in the AI era, Seoul risks losing competitiveness if it relies too heavily on memory chips.IMF forecasts showing Taiwan widening its lead over South Korea have fueled debate in Seoul over memory chip dependence, industrial policy and the country’s broader economic trajectory.
Currency dealers on Friday monitor exchange rates as a screen shows South Korea’s benchmark stock index (KOSPI) surpassing 8,000 points in a foreign exchange dealing room at the Hana Bank headquarters in Seoul. Taiwan’s GDP per capita is projected to exceed South Korea’s by more than US$10,000 within five years, according to the IMF’s World Economic Outlook 2026.
