South Korea’s political landscape is buzzing with cryptocurrency chatter as Democratic Party leader Lee Jae-myung, a presidential front-runner, has pledged to approve spot crypto exchange-traded funds (ETFs) should he secure victory in the upcoming June 3 election. Lee unveiled his crypto-friendly agenda on May 6, promising to create a safe investment environment aimed particularly at the nation’s youth—a demographic he hopes to court as he races toward the presidency. “I will create a safe investment environment so that young people can build assets and plan for the future,” Lee told The Korea Economic Daily in a statement that could resonate with a generation increasingly disillusioned with traditional financial systems.
Crypto Moves in the Election Arena
Lee’s pronouncements are part of a broader initiative to expand investment avenues for young Koreans, a move that includes the legalization of spot crypto ETFs, reducing transaction fees, and implementing enhanced consumer protection measures. According to a survey by Korea’s National Barometer Survey conducted between April 24 and April 30, Lee’s Democratic Party of Korea is leading the polls with 42% support, comfortably ahead of acting President Han Duck-soo, who trails at 13%. This is the first time Lee has incorporated cryptocurrency into his campaign platform, marking a significant shift in his political strategy.
Interestingly, Lee is not the only candidate making overtures to the crypto community. The ruling People Power Party has also floated crypto-positive proposals. Their agenda includes dismantling South Korea’s controversial one-exchange-one-bank rule, which currently restricts each crypto exchange to partnering with only one local bank—a regulation meant to mitigate money laundering risks by ensuring investor identities are verifiable. This policy, while well-intentioned, has been criticized for stifling market competition and innovation. As explored in our recent coverage of Litecoin’s surge following ETF approval speculations, the potential for regulatory changes can significantly impact market dynamics.
Market Impact and Industry Reactions
Analysts and industry insiders are keenly observing these political maneuvers, given South Korea’s robust crypto market, where an estimated 16 million people—about 31% of the country’s population—have access to crypto accounts. “The potential approval of spot crypto ETFs in South Korea could be a game-changer for the market,” said Park Min-su, a Seoul-based crypto analyst. “It could open the floodgates for institutional investments and significantly enhance liquidity.”
However, some remain cautious. “While the promises are encouraging, the real test will be in the execution and the regulatory framework that supports these initiatives,” commented Kim Seo-jin, a blockchain policy expert. “There’s always a gap between campaign promises and policy implementation, especially in a complex and rapidly evolving sector like crypto.” For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Political Context and Historical Underpinnings
The crypto-friendly overtures by both major parties come against a backdrop of political upheaval. The People Power Party, previously led by the now-impeached Yoon Suk Yeol, saw a dramatic fall in public confidence following Yoon’s declaration of martial law last December—a move that led to a rapid decline in Bitcoin and Ethereum prices, although the market quickly rebounded once the declaration was retracted. Yoon’s impeachment was upheld by Korea’s Constitutional Court on April 4, in a unanimous decision that has since reshaped the political playing field.
This context adds layers of complexity to the current election cycle, with candidates seeking to leverage crypto policies as a way to appeal to tech-savvy voters while also distancing themselves from the controversies of the past.
Looking Ahead
As the election date draws near, the promises surrounding crypto regulation and innovation are likely to become more central to the discourse. The approval of spot crypto ETFs, in particular, could usher in a new era for South Korea’s financial markets, but much depends on the political will and regulatory clarity that follows the election results.
For now, the crypto community watches with bated breath, hopeful but wary, as South Korea teeters on the cusp of potentially transformative financial policy shifts. Whether these pledges translate into tangible change remains to be seen, but for the moment, they offer a glimmer of possibility in a landscape fraught with uncertainty.
Source
This article is based on: South Korea presidential front-runner pledges to approve Bitcoin ETFs
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
