The South Korean People Power Party has proposed canceling the 22% cryptocurrency capital gains tax scheduled to take effect in 2027, arguing that the current tax system is immature and could create unfairness, particularly affecting young investors. The party is concerned that strict taxation will lead to capital outflows, with $110 billion already having left the market, impacting market activity. The bill is still under review, and its passage remains uncertain. If passed, it could boost market confidence and attract more investors.

South Korea's People Power Party held a closed-door meeting with major cryptocurrency exchange representatives on March 23 to discuss abolishing the virtual asset taxation system scheduled for implementation in 2027, and to hear proposals on stablecoin issuance and legislation. Floor leader Song Eon-suk has already proposed amendments to the Income Tax Act to address the double taxation issue.

South Korean President Lee Jae-myung nominated Shin Heung-soon as governor of the central bank, sparking new developments in stablecoin regulation. Shin Heung-soon takes a cautious approach, which may affect the legislative process for won-pegged stablecoins. The market is closely watching his position adjustments on stablecoins. This personnel change comes at a critical policy juncture, as technology companies are looking forward to new regulations to advance digital finance.

On March 23, the Korean won depreciated against the US dollar to 1,511 won, reaching its lowest level since 2009, prompting investors to seek safe haven assets. In South Korea's crypto market, however, USDT experienced a rare discount, trading at approximately 0.5% below the US dollar spot rate. Geopolitical tensions and stock market selloffs have suppressed stablecoin demand, with the USDT discount reflecting heightened market risk-aversion sentiment.

Gate News 消息，3月23日，韓國散戶投資者今日（週一）買入創紀錄的7萬億韓元KOSPI股票（韓國綜合股價指數）。

South Korean President Nominates Shin Hung-song, Director of Monetary Economics at the Bank for International Settlements, as Governor of the Bank of Korea. He previously expressed concerns about Korean won stablecoins, believing they could lead to capital outflows and impact financial stability. External observers are paying attention to any shifts in his stance on stablecoins after taking office.

Gate News report: On March 21, the 2026 Alliance Work Conference and First Phase Ecosystem Activity of the National Artificial Intelligence Application Pilot Base (Energy Sector, Power Direction) was held in Guangzhou. Eight enterprise institutions, including South China Grid Digital Group AI Research Center, Huawei, ZTE, and Baidu, were officially inducted as the first batch of representatives into the pilot base.

Gate News 消息，3 月 19 日，韓國央行（Bank of Korea）正在大規模測試數字韓元（Digital Won），並計劃於 2026 年推出 AI 驅動的支付系統。該測試是韓國央行數字貨幣（CBDC）項目的重要進展，旨在探索數字貨幣在實際支付場景中的應用。

Gate News Report: On March 18, South Korean financial regulators stated that they will expand the 100 trillion won market stabilization plan if necessary. Additionally, regulators will also formulate specific measures to prohibit "dual listing" between parent and subsidiary companies (meaning parent and subsidiary companies listing on the stock market simultaneously).