Windows 10 Creators Update (1703) provides improved support for High DPI and recommends using "Per-Monitor V2" DPI awareness. [1]

Swing supports Per-Monitor v1 DPI awareness, and Swing UI scales appropriately to monitor scaling. However, non-client area does not scale. Using "Per-Monitor V2" DPI awareness resolves this problem.

The solution is to add <dpiAwareness> element [3] in addition to <dpiAware> element [2] to application manifest.

[1] https://msdn.microsoft.com/library/windows/desktop/mt843498(v=vs.85).aspx#Per-Monitor_and_Per-Monitor__V2__DPI_Awareness_
[2] https://msdn.microsoft.com/en-us/library/windows/desktop/aa374191(v=vs.85).aspx#dpiAware
[3] https://msdn.microsoft.com/en-us/library/windows/desktop/aa374191(v=vs.85).aspx#dpiAwareness