South Korean investors are increasingly turning to gold-pegged stablecoins as a tax-efficient alternative amid rising gold prices. Unlike physical gold, which incurs a 10% value-added tax and other fees, crypto trading remains untaxed in South Korea. This has led to a surge in interest for digital assets like Tether Gold and PAX Gold, which are backed by physical gold and offer lower transaction fees. The trend is driven by the appeal of gold as a safe haven, especially as South Korea plans to introduce a 20% capital gains tax on crypto profits exceeding $36,000 annually from 2027. Tether Gold's market cap has soared 283% to $2.3 billion, reflecting the growing demand. Analysts suggest that the increasing market size of gold-pegged coins could further elevate gold prices as issuers purchase more gold to back their tokens.