Korea’s per capita gross domestic product (GDP) will exceed $36,000 (49.6 million won) this year, continuing to outpace Japan and Taiwan for the second consecutive year, according to a report by the International Monetary Fund (IMF).

The organization said in its World Economic Outlook report released Tuesday (local time) that Korea’s per capita GDP is expected to stand at $36,132 this year, up 1.6 percent from last year.

The figure is expected to jump to $37,675 next year, before soaring further to $40,000 in 2027.

The comparable figures for Japan and Taiwan next year are $32,859 and $33,234, respectively.

Japan’s per capita GDP is expected to fall 3.1 percent from $33,899 in 2023, while Taiwan’s is expected to rise by 2.6 percent from $32,404 in the same period.

This year, Korea’s per capita GDP, adjusted for cost of living as measured by purchasing power parity, reached $62,960.

This lags significantly behind Taiwan’s $79,031, but it surpasses Japan’s $53,059.

The IMF maintained this year’s growth outlook for Korea at 2.5 percent.

The report noted that the Bank of Korea was one of the first to increase interest rates, along with Brazil, Chile, Hungary, New Zealand, Norway, Peru and Poland, having raised key rates much earlier than major central banks.

“Faced with the pandemic, central banks worldwide initially adopted expansionary monetary policies aimed at stimulating economies and maintaining financial stability. As broader inflationary pressures emerged, central banks transitioned to tightening policies. Asia exhibited a more tempered response, and the U.S. adjusted its policies relatively later.”

Meanwhile, the IMF report coincides with growing calls that Korea should revise its income tax rules to reflect increases in the price of goods and services.

Real household income in Korea dipped 1.2 percent last year, even though its economy grew 1.4 percent.

The decline in the year-on-year inflation-adjusted figure, excluding taxes, borrowing costs and other expenses, marked the first retreat in 14 years.

Korea’s per capita nominal gross national income rose to 47.25 million won last year, increasing 51 percent compared to 2013. During the same period, the country’s headline inflation surged by 20 percent, while the income tax rate has remained unchanged since 2010.

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