Lee Jae-Myung, the Democratic Party of Korea’s presidential candidate, has committed to launching a virtual asset spot exchange-traded fund (ETF) along with reforms for the crypto sector in South Korea.

“I will create a safe investment environment so that young people can form assets and plan for the future,” stated Lee Jae-Myung. He also proposed an integrated monitoring system for virtual asset ETFs and a government-led market restructuring to reduce transaction fees.

According to reports from May 6, 2025, this pledge marks the first time any presidential candidate has addressed virtual assets during an election campaign. Lee’s commitment suggests a move towards institutionalizing virtual assets in the financial framework.

In a parallel development, the ruling People Power Party (PPP) recently introduced several significant crypto reforms, including approvals for spot cryptocurrency ETFs and a complete overhaul of South Korea’s digital asset regulations. This initiative is aimed at placing the country in line with global financial standards.

Citing the U.S. SEC’s January approval of spot Bitcoin ETFs, lawmaker Park Soo-min highlighted the importance of keeping up with international regulations.

🚀 Huge news for #crypto in South Korea!
🇰🇷 Presidential front-runner Lee Jae-myung pledges to greenlight spot #Bitcoin ETFs if elected.
Get ready for a new era of secure, accessible trading!

In addition, crypto trading activity continues to soar, surpassing traditional stock market trades in South Korea. The country is postponing the 20% capital gains tax on crypto until 2027 due to enforcement issues. Meanwhile, the government is strengthening regulations to combat market manipulation and enhance user protections.

South Korea remains one of the world’s most engaged crypto markets, with high popularity for altcoins such as XRP, reflecting a demand for swift and affordable transactions.