South Korea’s per capita gross national income dropped for the second consecutive year in 2020, central bank data showed Thursday, deflating anticipations of further growth after the figure surpassed the $30,000-mark for the first time in 2018.

The nation’s GNI per capita as of end-December last year shed 1.1 percent on-year to $31,755, in terms of dollars, according to preliminary data from the Bank of Korea. This marked the first time the figure dropped for two years in a row since the 2008 global financial crisis when it shed 11.2 percent and 10.4 percent on-year in 2008 and 2009, respectively. The GNI per capita had dropped 4.3 percent to $32,115 in 2019.

The GNI per capita is a measure of the amount of money earned per person in a nation and helps evaluate the standard of living for a population.

“When South Korea saw its GNI per capita fall for two consecutive years, it was back in the times of the 1997-1998 Asian financial crisis and the 2008 global financial crisis,” Shin Seung-chul in charge of national accounts at the Bank of Korea said in a press briefing.

“There were positive effects from the GDP deflator which grew 1.3 percent, but with the contraction of the real GDP and 1.2 percent increase in the won-dollar currency rate led to a 1.1 percent decline in the GNI,” he added.
The Moon Jae-in administration has expressed hope since the beginning of the year that Korea’s 2020 GNI per capita would be “on par” with those of the G-7 member nations. ”Korea’s GNI per capita is expected to ‘surpass’ those of the G-7 member nations,” Moon said in his New Year’s speech in January.

But the BOK tread cautious steps on the calculations, saying that the latest GNI per capita announcement for 2020 made by Italy was in euros and that it is “difficult to compare with the data announced in dollar at the moment.”

Earlier this month, Italy reported a GNI per capita of roughly 27,839 euros for 2020.

“It seems in terms of euros Italy’s GNI per capita declined 7 percent on-year, but for more accurate comparison, global organizations such as the International Monetary Fund and World Bank (must make the calculations),” Shin said.

The BOK official explained that Italy’s GNI per capita reflected its strong lockdown measures and blows dealt to its tourism industry.

Meanwhile, Korea’s economy expanded 1.2 percent in the last three months of 2020 on-quarter, 0.1 percentage point higher than the previous forecast, the same data showed. It overall contracted 1 percent last year, remaining flat from the BOK’s earlier projections.

By Jung Min-kyung (mkjung@heraldcorp.com)