South Korea has sustained growth for 65 years since rapid industrialization began in the 1960s, surpassing Japan in GDP per capita. It is forecast to rank among the world's top 11 economies by 2030 and is recognized as an example of a country that avoided the middle-income trap.
South Korea has continued to achieve long-term economic growth and reached a level of GDP per capita above Japan's. In 1980, it stood at approximately 25% of Japan's level, but by 2024 it had exceeded Japan's by more than 20%, and the gap continues to widen. Rapid industrialization and increased investment are regarded as the pillars of growth, including in the IMF's assessment.
By 2030, South Korea's real GDP per capita is expected to rank around 11th in the world, putting it ahead of Japan, Italy and the United Kingdom. It is forecast to rank among the top countries, with the exception of major oil exporters and some other cases.
South Korea's ability to maintain a high growth rate for 65 years is particularly notable. The 2024 edition of the World Development Report identifies South Korea as the most remarkable example of transformation in the economic history of the past 70 years, and recognizes its development into a leader in innovation and technology.
This article is a re-edited excerpt from a work by Richard Katz.