Presidential Election D-1... Both Lee and Yoon Are Friendly to Cryptocurrency Investors

Comparison of Cryptocurrency Pledges
Tax Exemption on Investment Gains up to 50 Million KRW
No Significant Differences Between the Two Candidates' Pledges

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As of the end of last year, the domestic cryptocurrency market size exceeded 55 trillion won. The total number of domestic users utilizing cryptocurrency service providers reached 15.25 million, with 5.58 million active trading users. With the rising enthusiasm for cryptocurrency investment, presidential candidates from both ruling and opposition parties have rushed to announce policies to win voter support. However, many opinions suggest that it is difficult to find significant differences between the pledges made by Lee Jae-myung, the Democratic Party presidential candidate, and Yoon Seok-youl, the People Power Party presidential candidate. This is why cryptocurrency investors respond with "it doesn't matter who wins."

Both candidates have proposed cryptocurrency investment-friendly pledges. The most supported policy among investors is the tax exemption on cryptocurrency investment profits up to 50 million won. The current tax exemption limit is 2.5 million won, and those who earn profits exceeding this amount must pay taxes at a 20% rate. Compared to the 50 million won exemption limit for domestically listed stocks, this is considered too low, leading to dissatisfaction. In response, Candidate Yoon pledged "complete tax exemption on coin investment profits up to 50 million won" and announced the principle of "maintenance of pre-adjustment and post-taxation." After Candidate Yoon raised the tax exemption limit, Candidate Lee also promised to raise the tax exemption limit to 50 million won and allow a five-year carryover deduction for investment losses.

Both candidates also hold positive views on Initial Coin Offerings (ICO), contrary to government policy. In September 2017, the government banned all domestic ICOs regardless of name or format. As a result, ICOs were conducted overseas, drawing criticism for causing national wealth outflow. Candidate Lee stated that ICOs would be allowed after safety measures are established, while Candidate Yoon pledged to allow ICOs starting with the Exchange Issued Offering (IEO) method, which includes safety measures. IEO is a form where the exchange conducts primary verification and then sells the cryptocurrency on consignment.

Additionally, Candidate Lee promised ▲ a one-year deferral on virtual asset taxation ▲ legalization of virtual assets ▲ consideration of issuing and public offering of security-type cryptocurrencies (STO) ▲ establishment of a digital asset ecosystem. Candidate Yoon proposed ▲ enactment of a Digital Asset Basic Act and establishment of a Digital Industry Promotion Act ▲ fostering a new concept digital asset market through the activation of Non-Fungible Tokens (NFTs). However, when summarizing the candidates' policies, evaluations suggest there is little difference.

Professor Hong Ki-hoon of Hongik University’s Department of Business Administration explained, "The two candidates have different perspectives on capital markets, but their pledges on cryptocurrency are unusually similar. This phenomenon seems to have occurred because they did not establish a clear viewpoint and create pledges accordingly, but rather included what investors were saying at the time."

This content was produced with the assistance of AI translation services.