NFTs Used as Funding Mechanism for South Korean Electoral Campaigns

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South Korean presidential candidate Lee Jae-myung is preparing to use NFTs to raise funds for his upcoming election campaign. The Democratic Party member is planning to issue NFTs to those who donate to his campaign, with such NFTs featuring images of himself and his pledges.

According to campaign official Kim Nam-kook, the party took this decision as a ploy to appeal to millennials and younger generations: “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.

The Democratic Party are also exploring other ways to utilize new technologies, which has led to their acceptance of crypto donations. Lee Kwang-jae, another member of the party, said that he would be accepting such donations from 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.” In addition, Lee points out that politics needs to correct its failures to keep up with digital developments by making politicians champions of digital transformation.

The narrative behind ‘how’ and ‘if’ such initiatives will be required to pay tax has been ever changing, with The South Korean Financial Services Commission initially announcing back in November that NFTs would not be regulated, however recently, they took a back-pedalled step saying NFTs will in-fact be taxable. The law amendment will require a 20% tax payment on digital asset incomes that exceed 2.5 million wong ($2,100), but such implementation is delayed for one year due to flaws pointed out the Democratic Party.


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