Strong Won to Propel Per-Capita Income to $20,000
By Lee Hyo-sik
Staff Reporter
South Korea's per-capita gross national income (GNI) is projected to exceed $20,000 this year for the first time mainly on a stronger won against the dollar, but its global ranking will unlikely move up significantly from its current 49th place.
It took 12 years for Korea to double its GNI. An economist for the Hyundai Research Institute said the stronger won, not necessarily improved economic fundamentals, is behind hitting the $20,000 mark. He said the majority of developed nations post over $30,000 per-capita GNI.
In order for the country's per-capita GNI to rank 13th and higher in the world to match its overall economic size, the Korean economy needs to double its current output, according to the World Bank, Sunday.
Greece ranked 40th last year among the 209 economies across the globe as Greeks earned an average of $21,690 per person, indicating that even if Korea's per-capita GNI surpasses $20,000, its ranking will likely reach only as high as 41st.
Per-capita GNI reached $17,690 in 2006, ranking 49th, while its overall gross domestic product (GDP) expanded to $890 billion, the 13th largest in the world. The World Bank also said Korea's total GNI was the 12th largest with $857 billon.
The won has gained about 1.7 percent against the dollar this year.
Sweden ranked 12th in per-capita income as Swedes made an average of $43,480 per person last year, followed by the Netherlands with $42,670. Luxembourg topped the list as its per-capita GNI reached $76,040.
The country's per-capita GNI ranks relatively low, compared to the size of its economy, because many European economies whose overall scale is smaller to Korea generate higher income per person on tourism and other advanced service sectors.
Also, Kuwait, the United Arab Emirates and other small oil-rich economies in the Middle East also rank higher than Korea as they bring in huge amount of dollars from crude oil exports.