South Korea’s presidential candidates show Support for Cryptocurrency

In its latest election season, the South Korean presidential candidates have all announced crypto-friendly stances to win over the younger demographic. When observing the country, voters feel that real estate is their biggest issue. It is worth noting that SK citizens under the age of 24 earn around KRW 2.6 million ($2,176) a month. With rent prices increasing, especially in Seoul, these citizens see little to no hope of buying an apartment with their current purchasing power. Due to these issues, many of these youths have turned to crypto.

According to Edward Hong, the head of the crypto venture firm Hashed, there are over 5 million individual crypto accounts across South Korea’s top exchanges. He estimates that 10% of the voting population deals with crypto.

South Korea is widely regarded as one of the most technologically advanced countries in the world. With 91% of the population owning smartphones, an internet penetration of 96.5%, and a love for gaming, experts believe that the average South Korean has at least some experience with crypto trading. Given these factors, Gen Z voters have emerged as a serious electoral force in the country.

In response to this, SK presidential candidates have taken a liking to cryptocurrency. However, these candidates have yet to offer concrete policies in regards to its regulation. On the other hand, they have given detailed pledges to fix the housing issues.

“They are incentivized to say more crypto-friendly statements or not say anything negative, as that might lose them votes from the young generation,” said Steve Lee, an investor at BlockTower Capital, a hedge fund focused on crypto assets and blockchain technology.

Last September, the current administration proposed a 20% tax on crypto gains made over one year. This tax would only apply to gains of over KRW 2.5 million (~$ 2,122). Although, after receiving backlash from the public, policymakers had to retreat from this proposal.

“There has been progress in 2021, but regulatory guidance on crypto investment still needs more clarity,” Lee said.

Source: Coindesk