This week’s election signals a milestone for the crypto industry in South Korea as both leading candidates, Lee Jae-myung and Kim Moon-soo, expressed commitment to enhancing crypto regulations and broadening access.
According to a report from Bloomberg published on June 2, 2025, about 18 million people are engaged in crypto activities in South Korea. Moreover, local crypto exchanges have been showing a greater turnover than the KOSPI and KOSDAQ indices.
Data from the Bank of Korea indicates that by late 2024, South Koreans held cryptocurrencies worth approximately 104 trillion won (around $74.5 billion).
News: South Korea’s presidential candidates pledge to authorize spot crypto ETFs, relax regulations, and introduce a won-backed stablecoin.
(Translation: News: South Korea’s presidential candidates vow to legalize spot crypto ETFs, ease rules, and launch a won-backed stablecoin.)
The rising significance of crypto has incentivized Lee and Kim to endorse pro-crypto policies in their election campaigns.
Presidential Candidates’ Agreement on Crypto ETFs
Lee has expressed his desire to legalize spot crypto ETFs and aims to invest the national pension fund, which amounts to $884 billion, into crypto assets. He also wishes to modernize the financial system by creating stablecoins linked to the South Korean won. During a discussion in May, he stated that a won-backed stablecoin market is essential for retaining national assets within the country.
However, some proposed changes have not been well received in the community. Rhee Chang-yong, the Governor of the Bank of Korea, has warned that stablecoins must be regulated by official banking institutions to maintain monetary policy effectiveness.
Kim Moon-soo has also shown support for regulating crypto and aligns with Lee on this issue, marking a shared commitment to easing regulations and promoting crypto acceptance.
A Gallup Korea poll on May 28, 2025, revealed that 49% of respondents supported Lee while 39% chose Kim.
Increasing Participation Spurs Regulations
The rise in retail interest in crypto in South Korea, along with previous issues of fraud, has prompted new regulations aimed at enhancing transparency and security within the crypto ecosystem. In July 2024, the government introduced the Virtual Asset User Protection Act, imposing stringent requirements on exchanges, including severe penalties for breaches.
On May 20, 2025, the Financial Services Commission announced new guidelines for nonprofit crypto transactions and tightened listing standards for exchanges. Additionally, a Digital Asset Committee was established by the South Korean Democratic Party to foster policy development and industry growth.
Key Takeaways
- Presidential candidate Lee aims to invest in crypto with the $884 billion national pension fund.
- Both candidates, Lee Jae-myung and Kim Moon-soo, are united in their support for legalizing spot crypto ETFs.
- Candidate Lee is looking to innovate the country’s financial framework with won-backed stablecoins.
