{"id":2201254,"date":"2023-06-02T17:41:34","date_gmt":"2023-06-02T08:41:34","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201254"},"modified":"2023-06-05T18:53:12","modified_gmt":"2023-06-05T09:53:12","slug":"a-south-korean-crypto-scandal-is-testing-the-political-loyalties-of-young-voters","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/06\/a-south-korean-crypto-scandal-is-testing-the-political-loyalties-of-young-voters\/","title":{"rendered":"A South Korean crypto scandal is testing the political loyalties of young voters"},"content":{"rendered":"

College student Shin Je-ha used to count himself a supporter of the Democratic Party (DP), the progressive main opposition that has long counted on the backing of young people like him.<\/span><\/p>\n

But a recent scandal surrounding how one of the party\u2019s lawmakers allegedly abused his position to enrich himself through cryptocurrency assets has Shin questioning his allegiance to the DP\u00a0<\/span><\/p>\n

\u201cAs a financially struggling college student, I was distressed that there may not be a politician who truly understands the lives of ordinary people,\u201d Shin told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

He is far from the only young person who has grown disenchanted with the party in recent months, as the snowballing scandal threatens to do irreparable damage to its base.\u00a0<\/span><\/p>\n

At the center of the controversy is now-<\/span>former<\/span><\/a> DP lawmaker Kim Nam-kuk. He has been propelled into the limelight due to his sizable cryptocurrency portfolio, which allegedly included nearly 800,000 <\/span>Wemix<\/span><\/a> coins \u2014 a local cryptocurrency \u2014 valued at approximately $4.5 million (6 billion won) in 2021.<\/span><\/p>\n

Kim is accused of <\/span>feigning<\/span><\/a> financial distress while concealing his substantial crypto holdings. He reportedly solicited donations from fellow party members, reinforcing an image of economic hardship \u2014 an act that has not sat well with the public.<\/span><\/p>\n

Even more seriously, Kim allegedly <\/span>co-sponsored<\/span><\/a> a bill in July 2021 proposing a delay in taxation on virtual assets, which occurred roughly six months before he emptied his Wemix coins from his wallet.<\/span><\/p>\n

In the wake of this scandal, the political preferences of South Korean youth voters aged 18 to 29 have undergone a significant shift, as this demographic that once largely favored the DP has increasingly abandoned the party in recent weeks.\u00a0<\/span><\/p>\n

The controversy has struck at the heart of the party\u2019s credibility with young people, and as next year\u2019s parliamentary election, it\u2019s rapidly running out of time to stop the bleeding from this self-inflicted wound.<\/span><\/p>\n

\"\"

A graph showing party preference by age group | Image: Korea Pro<\/em><\/p><\/div>\n

DISILLUSIONED<\/b><\/p>\n

The backlash against the DP has been <\/span>most dramatic<\/span><\/a> among younger voters, a Realmeter poll recently showed. Support among individuals in their 20s and 30s plummeted by 12.9 and 8.5 percentage points, respectively.<\/span><\/p>\n

A separate Gallup Korea poll corroborated the trend, indicating that only <\/span>19%<\/span><\/a> of those aged 18 to 29 favored the DP in the second week of May. It\u2019s a striking blow for the party, which hasn’t witnessed its approval rating among that age group drop into the teens since <\/span>January<\/span><\/a>.<\/span><\/p>\n

The news of Kim\u2019s coin-holding scandal broke in early May and appears to be driving the recent decline in support among young voters.\u00a0<\/span><\/p>\n

Kim, a relatively young lawmaker at 40 years old, had <\/span>promised<\/span><\/a> he would push legislation that would compel universities to provide housing options to students that they can pay for in monthly installments. It\u2019s thus notable that Kim has lost support from the very constituency that he sought to appeal to.<\/span><\/p>\n

Cryptocurrency\u2019s surging popularity among young adults adds an intriguing layer to the political scandal. <\/span>Over half<\/span><\/a> of South Korean crypto investors fall within the 20 to 30 age bracket, a group that has poured an <\/span>estimated<\/span><\/a> $15 billion (20 trillion won) into cryptocurrency exchanges as of last year.<\/span><\/p>\n

\"\"

A graph showing annual bankruptcy filings by individuals under 39 and clinical depression among young adults in their 20s | Image: Korea Pro<\/em><\/p><\/div>\n

The lure of rapid returns from cryptocurrency investments has attracted South Korean youth facing <\/span>mounting financial challenges<\/span><\/a>, including high inflation and stubborn unemployment rates. But it has also had alarming consequences: Recent data from Seoul Bankruptcy Court and the Health Insurance Review & Assessment Service <\/span>point<\/span><\/a> to a rise in bankruptcy filings and a startling <\/span>127%<\/span><\/a> increase in depression rates among young individuals engaged in crypto trading.<\/span><\/p>\n

In response to the allegations against Kim, a group of young DP lawmakers publicly criticized the lawmaker for his actions.<\/span><\/p>\n

\u201cCurrently, there are instances of young individuals who resort to ending their own lives due to their cryptocurrency investment failures,\u201d Yang So-young, the chairperson of the DP\u2019s university students committee, said during a May 12 <\/span>press briefing<\/span><\/a>. She pointed out the destructive influence of Kim\u2019s actions, emphasizing how they have \u201ccaused a sense of betrayal among numerous young people.\u201d<\/span><\/p>\n

Adding to this sentiment, 27-year-old DP lawmaker Park Ji-hyun \u2014 <\/span>once a rising star<\/span><\/a> in her party \u2014 lamented the party\u2019s passive response to its <\/span>numerous controversies<\/span><\/a>. \u201cThe party\u2019s apparent helplessness, passively responding to its scandals, frustrates and saddens me,\u201d she said on her social media page, underlining the urgency for \u201cproactive and decisive actions from the leadership.\u201d<\/span><\/p>\n

Shin Je-ha, the college student, expressed his disillusionment with the party due in part to the scandal. \u201cThe fact that he focused more on his financial gain than his constituents\u2019 well-being adds to my unease. I am disheartened to have witnessed this from the party I endorsed,\u201d he told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

In contrast to Shin\u2019s wavering political allegiance, a subset of the DP\u2019s young supporters has showcased <\/span>steadfast<\/span><\/a> loyalty. Some have initiated a petition against politicians who voiced criticism toward Kim Nam-kuk, aiming at politicians like Yang So-young.<\/span><\/p>\n

\u201cYang So-young held a press conference without any prior consultations with the other committee members,” Lim Ji-woong, another university students committee member, <\/span>said<\/span><\/a> at a press conference that called for Yang\u2019s resignation. <\/span><\/p>\n

\"\"

Yang So-young, the chairperson of the DP\u2019s university students committee, speaking during a press briefing on May 12, 2023 | Image: Facebook<\/a> via DP\u2019s university students committee<\/span><\/em><\/p><\/div>\n

REPAIRING TRUST<\/b><\/p>\n

The DP faces an uphill climb in regaining the trust of young voters, a demographic crucial to its electoral success. The actions of Kim Nam-kuk have forced the DP into a position of damage control and reputation management.<\/span><\/p>\n

One response to this crisis has been legislative: The party has sponsored a bill that <\/span>mandates<\/span><\/a> lawmakers to disclose their cryptocurrency holdings. This measure aims to promote transparency in public officials\u2019 virtual assets.\u00a0<\/span><\/p>\n

Kim <\/span>allegedly<\/span><\/a> emptied his digital wallet before the enforcement of a rule that mandated brokers or operators in the virtual asset market to report the identities of sellers and buyers involved in transactions exceeding $750 (1 million won) to financial authorities.<\/span><\/p>\n

Aside from withdrawing crypto before the implementation of the aforementioned rule, Kim also <\/span>co-sponsored<\/span><\/a> a bill in July 2021 proposing a delay in taxation on virtual assets, which occurred roughly six months before he emptied his Wemix coins from his wallet.<\/span><\/p>\n

It\u2019s unclear whether such measures will be enough though. Young voters will be key if the party hopes to maintain its majority control of the National Assembly in next year\u2019s parliamentary elections and check the power of conservative President Yoon Suk-yeol and the People Power Party.<\/span><\/p>\n

But rebuilding trust will take time, and the party has less than a year until those young voters mark their ballots to attempt to fix the damage.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

College student Shin Je-ha used to count himself a supporter of the Democratic Party (DP), the progressive main opposition that has long counted on the backing of young people like him. But a recent scandal surrounding how one of the party\u2019s lawmakers allegedly abused his position to enrich himself through cryptocurrency assets has Shin questioning […]<\/p>\n","protected":false},"author":10207,"featured_media":2201255,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[27],"class_list":["post-2201254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-domestic-politics"],"yoast_head":"\nA South Korean crypto scandal is testing the political loyalties of young voters - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/06\/a-south-korean-crypto-scandal-is-testing-the-political-loyalties-of-young-voters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A South Korean crypto scandal is testing the political loyalties of young voters - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"College student Shin Je-ha used to count himself a supporter of the Democratic Party (DP), the progressive main opposition that has long counted on the backing of young people like him. 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