The upcoming legislative elections in South Korea on April 10 could be influenced by the voting intentions of the country’s 6 million crypto traders. Both major parties, the Democratic Party and the People’s Power Party, have made crypto-related manifesto pledges in an effort to attract the youth vote. The Democratic Party has promised to push for the approval of Bitcoin and altcoin spot ETFs, while the People’s Power Party plans to defer the introduction of capital gains tax on crypto-related profits. The youth demographic is seen as a crucial swing vote group in South Korea, as they tend to be politically unaffiliated.
Crypto policy has been a key issue in South Korea in recent years, with politicians using it as a political football during elections. Currently, crypto traders are set to start paying tax on their profits from January 1, 2025. Representatives from the People’s Power Party have expressed the desire to create regulations to protect crypto investors. The focus in South Korea is now on the votes of the nearly 6 million crypto investors, who could play a significant role in determining the outcome of the legislative elections.
Crypto was also a major topic among the presidential candidates in the 2022 South Korean election, with President Yoon Seok-yul eventually winning by a narrow margin. Analysts believe that the realization of pro-crypto pledges could have a significant impact on domestic markets. If promises such as the approval of a Bitcoin spot ETF come to fruition, it is expected that the demand for ETF futures will shift to the spot markets. Crypto investors have expressed cautious optimism about the potential benefits of these promises, including lower taxes and market boosts.
While some investors believe that pledges to protect investors and defer taxes could result in significant benefits for the crypto market, others remain skeptical about the politicians’ promises. Some see these pledges as opportunistic attempts to gain votes and doubt whether they will be fulfilled. Election observers predict that the People’s Power Party has a slight edge heading into the vote, but the Democratic Party currently holds a 41-seat lead over its biggest rival. A major swing in votes nationwide would be required for the People’s Power Party to secure an outright majority in the legislative elections.
The Seoul Rehabilitation Court has noted a 31% increase in “personal rehabilitation” applications in FY2023, driven by “crypto investment” among individuals aged 20-29. This indicates the growing impact of the crypto market on various aspects of South Korean society, including the financial well-being of its citizens. Both major parties have been leveraging the country’s prominent crypto market to attract voters ahead of the parliamentary election, highlighting the importance of crypto-related policies in shaping political discourse and decision-making in South Korea.
