South Korea’s cryptocurrency industry stands to gain no matter who wins the upcoming presidential snap election, with both leading candidates pledging pro-crypto policies, including legalizing spot crypto ETFs, easing regulatory constraints, and introducing a stablecoin backed by the Korean won.
Voters will head to the polls on June 3 to elect a new president following the impeachment and removal of Yoon Suk-yeol, who was ousted after attempting to declare martial law in December.
Currently leading the race is Lee Jae-myung of the center-left Democratic Party, facing off against conservative People Power Party candidate Kim Moon-soo. Both contenders have voiced strong support for advancing the country’s crypto ecosystem.
Lee has proposed the legalization of spot crypto exchange-traded funds and suggested that South Korea’s $884 billion national pension fund should be allowed to invest in digital assets. He is also advocating for the issuance of a won-backed stablecoin, which he says will modernize the country’s financial infrastructure and prevent capital flight.
“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,” Lee said during a May policy forum. “I will create a safe investment environment so that young people can build assets and plan for the future.”
Additionally, Lee has expressed support for loosening stringent banking regulations that currently require cryptocurrency exchanges to partner with licensed banks to offer fiat-related services.
Kim has echoed many of Lee’s crypto policy proposals, including backing the legalization of spot crypto ETFs. His campaign has also emphasized regulatory easing and expanding crypto access an unusual show of bipartisan alignment in South Korean politics.
Simon Seojoon Kim, CEO of Seoul-based Hashed Ventures, told Bloomberg that the unified stance of major candidates means “the country’s crypto investors face a clear win regardless of the election outcome.”
According to a Gallup Korea poll conducted on May 28, Lee leads the race with 49% support, while Kim trails at 36%.
Push for clearer crypto regulation
The call for regulatory reform comes amid rising urgency due to South Korea’s high rate of crypto participation. In July 2024, the government implemented stricter laws governing the industry, including harsh penalties—potentially even life sentences—for serious criminal violations tied to digital assets.
On May 20, the Financial Services Commission introduced comprehensive new guidelines, tightening standards for token listings and establishing clearer rules for nonprofit crypto fundraising.
Meanwhile, the Democratic Party launched a dedicated Digital Asset Committee in May to spearhead crypto policy development and promote sector growth.
South Korea remains one of the world’s most active crypto markets. As reported by Bloomberg, more than 18 million people—over a third of the country’s population—are involved in crypto. Daily trading volumes on crypto platforms often surpass those on the nation’s primary stock exchanges, with user numbers recently exceeding 16 million.
