South Korean presidential candidate to use NFTs to raise funds for campaign

Democratic Party presidential candidate Lee Jae-myung prepares to use NFTs to raise funds for his campaign in a bid to appeal millenials.

Democratic Party (DP) presidential candidate Lee Jae-myung prepares to use nonfungible tokens (NFTs) to raise funds for his campaign. 

The party will issue NFTs to those who donate money for the campaign for the upcoming presidential elections. The NFTs will contain images of the candidate and his pledges.

In an interview with Yonhap News, campaign official Kim Nam-kook said the party is doing this to appeal to the younger generation.

“As the young generation in their 20s and 30s are interested in emerging technologies, including virtual assets, NFTs and the metaverse, this type of fundraising could appeal to them,” said Nam-kook.

The DP also points out that it is exploring new ways to utilize new technologies, including using NFTs in campaigns and accepting crypto donations.

Just recently, another member of the DP also announced that he would be accepting donations in crypto. Representative Lee Kwang-jae mentioned that he would take crypto donations in mid-January.

“It is high time that we undertake innovative experiments to enhance our understanding of these future technologies and change perceptions of digital currencies and NFTs,” wrote Lee.

Aside from this, Lee underscored that politicians should be leaders in embracing digital transformation. He noted that policies and laws fail to catch up to digital developments.

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Meanwhile, the South Korean Financial Services Commission announced back in early November that NFTs would not be regulated. However, a few weeks later, the FSC backpedaled by announcing that NFTs would be taxable in January 2022.

The law amendment will require a 20% tax payment on digital asset income that goes above 2.5 million won ($2,100). However, the implementation of the tax was delayed for one year due to flaws pointed out by the DP.