The International Monetary Fund predicts that Taiwan will surpass South Korea’s real GDP per capita by US$10,000 in 2031. The figure was reported by Taiwan’s Central News Agency on Sunday, April 19.

The growth is expected to be driven by the artificial intelligence boom and Taiwan’s integrated semiconductor ecosystem. According to reporting by The Korea Times, Taiwan’s real GDP per capita surpassed South Korea’s last year, and the gap is likely to grow in the future.

Taiwan’s per capita GDP is projected to reach US$56,101 in 2031, while South Korea’s will stand at US$46,019. According to data from the Korea Center for International Finance based on forecasts from major global investment banks, Taiwan’s economy is expected to grow by an average of 7.1% this year, while South Korea’s by just over 1%. Researchers from KCIF noted that Taiwan’s advantage lies in its fully integrated semiconductor ecosystem, which can swiftly respond to the surge in AI demand. By contrast, South Korea still faces challenges in diversifying its supply chains and expanding its industrial base.