The number of ultra-wealthy individuals worldwide surged 14.4% to 556,850 in 2024, fueled by the AI boom according to Altrata wealth data analytics firm. In South Korea, clients with over 3 billion won tripled in a year, with the number of clients holding more than 3 billion won in financial assets rising from about 3,000 in May last year to over 9,500 this year. The growth was especially rapid among ultra-high-net-worth individuals holding net assets exceeding $100 million, with these individuals significantly increasing their wealth by founding or investing in companies in AI, semiconductors, and advanced technology sectors. As The Wall Street Journal reports, 26 CEOs in the United States received annual compensation packages exceeding $100 million last year, more than double the 12 recorded a year earlier, with Tesla CEO Elon Musk's compensation package valued at $158 billion, setting a new all-time record.
The AI boom has created a stark K-shaped economic divide where some industries and socioeconomic groups thrive while others struggle. As reported by Business Standard, Korean stocks plunged 10% on Tuesday before rising over 3% a day later, highlighting the market's extreme volatility driven by AI-driven chip demand. Samsung and SK Hynix have each crossed $1 trillion in market valuation, with Samsung and SK Hynix dominating production of memory chips that help AI systems store information. Nearly 83% of net stock purchases by retail investors on the Kospi this year have been Samsung or SK Hynix, as investors chase the AI bonanza. Meanwhile, non-semiconductor exports — petrochemicals, steel, batteries, auto parts — are struggling with weak demand and intense competition from China, creating a growing divergence between sectors.
Taiwan's AI and semiconductor boom has created a stark economic paradox where first-quarter GDP growth reached 14.55% year-over-year, the highest figure in 48 years, yet everyday life is growing tougher for ordinary workers. As reported by Hankyoreh, average monthly wages in Taiwan stood at 64,000 Taiwan dollars (around ₹3.1 million) in 2025, just 73% of the corresponding figure in Korea, despite Taiwan's gross national income per capita breaching the US$40,000 mark last year, overtaking Korea. The housing price-to-income ratio in Taipei sits at 16, even higher than London and New York, with the phrase "eggshell suburbs" commonly heard among Taiwanese youth as young people are pushed into fringe districts. This economic disconnect is exemplified by the "Beggar Superman" phenomenon, where young people race to purchase discounted prepackaged meals at a time when the national economy is breaking records, symbolizing the gap between growth on paper and everyday reality.
South Korea's export-driven economy continues to benefit from a semiconductor boom, but many young people are facing a worsening employment crisis marked by shrinking job opportunities and widening income and wealth gaps. As barriers to quality jobs rise, growing numbers of young Koreans are giving up on job hunting altogether and joining the category of people classified as "resting" — neither employed nor actively seeking work. A 23-year-old university student majoring in hotel culinary arts said he has become discouraged by the limited number of entry-level openings in his field. Even when suitable positions are posted, companies often recruit only one or two candidates. Experts say the benefits of economic growth have failed to spread broadly across the labor market, leaving many young job seekers behind. The wage gap between large corporations and smaller businesses remains one of the biggest obstacles, with the average monthly wage at small and medium-sized enterprises at 3.362 million won ($2,198) last year, equivalent to 53.2% of the 6.323 million won earned at large companies.
The economic data reveals a significant gap between nominal and real economic indicators across both economies. As reported by NDTV Profit, real GDP grew about 4% YoY in the first quarter of 2026, while real GDI jumped 13%, creating a nearly 9 percentage point gap between the two measures. This divergence occurs because while GDP measures output value, GDI reflects income generation through wages, profits, rents and taxes. The semiconductor boom has driven this income growth much faster than output growth, raising questions about the sustainability of current economic gains. In Taiwan, corporate operating profits jumped by 7% from 2020 to 2024 while wage growth stagnated at 4%, according to the Industrial Technology Research Institute. The labor income share in Taiwan has declined from 50% in the 1990s to 43% in 2024, highlighting how much less of the economic pie is reaching workers compared to capital owners.
South Korea's economic structure has become increasingly concentrated in a few sectors, creating vulnerability concerns. According to NDTV Profit, chips and AI-related equipment now account for more than 40% of South Korea's exports, more than double their share two years ago, while Samsung Electronics and SK Hynix alone account for more than half of the Kospi's market capitalization. Meanwhile, The Economist highlights that non-AI exports have stagnated, battery plants are operating below capacity, and chemical output remains well below its 2022 levels. The bigger concern is where the semiconductor windfall ends up, with Kim Yong-beom, South Korea's presidential policy chief, warning that such gains have historically flowed into real estate rather than the broader economy. This concentration risk is amplified by the fact that much of the income accrues to shareholders and employees of large firms, while nearly 60% of Korean workers are employed by small businesses.
