As South Korea gears up for its upcoming presidential election on June 3, 2025, the political landscape is increasingly focused on the promise of cryptocurrency. Leading candidate Lee Jae-myung, the head of the Democratic Party, has made headlines by pledging to approve spot cryptocurrency exchange-traded funds (ETFs) and propose other crypto-friendly policies if elected.
On May 6, Lee articulated his commitment to creating a safe investment environment aimed primarily at the nation’s youth, a key demographic for the election. In his own words, “I will create a safe investment environment so that young people can [build] assets and plan for the future.” This statement underscores a growing recognition of the role of digital currencies and investment opportunities among younger voters.
In addition to legalizing spot crypto ETFs, Lee’s proposal includes reducing transaction fees and enhancing consumer protection measures, initiatives that could revolutionize South Korea’s crypto market. The Democratic Party currently enjoys significant support, leading polls with approximately 42%, while the ruling People Power Party, led by acting president Han Duck-soo, lags at 13%.
This public commitment marks the first time that Lee has integrated cryptocurrency into his campaign narrative. Interestingly, the Democratic Party previously laid out similar promises during the 2024 general election campaign, advocating for the legalization of spot crypto ETFs. However, progress on these proposals has stagnated, raising questions about political will and regulatory hurdles.
Competing Promises from the People Power Party
Not to be outdone, South Korea’s ruling People Power Party has also made headlines with its own set of crypto policy promises announced in late April. These commitments include allowing spot crypto ETFs, dismantling the contentious one-exchange-one-bank rule, and establishing a regulatory framework for stablecoins. The one-exchange-one-bank rule, intended to reduce money laundering and enhance transparency, currently restricts each crypto exchange to partnering with only one local bank, preventing broader exchange options.
With approximately 16 million, or 31%, of South Korea’s 51.7 million people currently holding a crypto account, it is evident that the nation is embracing digital currencies. This growing accessibility provides a fertile ground for potential political candidates to tap into the interests and investment ambitions of a significant electorate.
The crypto landscape in South Korea has seen its fair share of volatility, especially following the controversial martial law declared by former president Yoon Suk Yeol, which temporarily spooked the market. Nevertheless, the market rebounded quickly when the martial law was lifted, demonstrating the resilience of cryptocurrencies amid political turmoil.
As the election approaches, it will be intriguing to see whether these political promises translate into reality and how they may impact South Korea’s regulatory environment for cryptocurrencies.
