South Korean presidential candidate accepts cryptocurrency donations for his campaign

The Democratic Party of Korea is trying to spread its wings in the cryptocurrency space by accepting crypto donations and supporting NFTs in the gaming industry.

South Korean politician and former civil rights lawyer Lee Jae-Myung will accept cryptocurrency donations for his presidential campaign. Lee declared his intention to run as a presidential candidate in July 2021. He became the candidate of the Democratic Party of Korea on October 10, 2021.

The gaming industry will get a boost from NFTs

Each donor to Lee's campaign will receive an NFT when they donate funds in Bitcoin, Ether, or another of the three cryptocurrencies under consideration (find out how buy Bitcoins with our guide). Lee hopes to attract the interest of young voters who have shown an interest in digital currencies. The NFT receipt will contain Lee's photographs and will carry his election promises. It is not clear on which blockchain the NFTs will be minted. NFTs will be emailed to donors, and the cryptocurrency exchanged for cash using a centralized exchange. The fiat currency will be deposited into a contribution account. NFTs will serve as a type of bond, where holders can "trade their digital assets" with others.

Campaign Committee Representative Lee Kwang-Jae said, "Donations will be handled in accordance with the Public Official Election Act and Political Fund Management Guidelines." Lee Jae-Myung will be the first politician in the world to issue NFTs for campaign funding.

Park Young-sun, who heads digitization policies for the Democratic Party's campaign committee, also expressed his alignment with the party's crypto-friendly policies. It issued an NFT linked to a Facebook message written in 2018, opposing the closure of cryptocurrency exchanges. He will meet with gaming industry representatives next week to discuss promoting the nation's gaming industry using NFTs. The high speed of the internet and the robust telecommunication infrastructure have led to the popularity of micropayments, especially in games.

How popular are cryptocurrencies in South Korea?

Interest in cryptocurrencies has flourished in South Korea. According to a 2021 survey, 40,4% of 1885 workers have invested in cryptocurrencies. Korean workers between the ages of 20 and 39 make up 86,9% of all cryptocurrency holders surveyed. 

South Korea also has a youth unemployment problem, and in February, March and April 2021, it had an unemployment rate of 10%. Additionally, the South Korean National Assembly passed new laws in March 2020 that laid the foundation for regulatory oversight of cryptocurrencies and exchanges, including anti-money laundering processes. This came in the midst of a surge in interest in cryptocurrencies during the Covid-19 pandemic.