tl;dr
South Korea's upcoming presidential election on June 3 features crypto investors, about 30% of the population, as a key voting bloc. Leading candidates Lee Jae-myung and Kim Moon-soo support pro-crypto policies, including legalizing spot Bitcoin ETFs currently banned in Korea. Lee proposes developin...
South Korea’s June 3 presidential election centers on courting approximately 15 million crypto investors—about 30% of the population—by pushing for legalization of spot Bitcoin ETFs and stablecoins. These initiatives aim to attract young, tech-savvy voters eager for regulated investment opportunities and greater financial inclusion.
Leading candidates Lee Jae-myung and Kim Moon-soo back comprehensive regulatory reforms. Key proposals include legalizing spot Bitcoin ETFs, currently banned in Korea, and launching a won-backed stablecoin market to reduce dependency on foreign stablecoins and curb capital outflows. This would mark a significant shift in South Korea’s crypto landscape.
The proposed Digital Asset Basic Act seeks to formalize digital assets’ legal status, mandating stablecoin issuers to register with the Financial Services Commission and maintain reserves of at least 50 billion won. Such legislation is poised to transform digital asset regulation and promote institutional adoption, including allowing large players like the National Pension Fund to invest in crypto assets once stability criteria are met.
Despite the enthusiasm, concerns linger about macroeconomic risks. Critics highlight the dangers of private-sector money creation via stablecoins and potential systemic impacts, signaling skepticism until detailed policies and tangible benefits emerge. Regulatory authorities have ramped up scrutiny, especially investigating suspicious trading in young investors aged 20–30, and are preparing stronger investor protections, including blocking unregistered foreign crypto exchanges.
Crypto has become both an opportunity and a contentious issue in South Korea’s presidential race. It embodies a balancing act between fostering innovation and financial inclusion, while addressing market stability and regulatory challenges. As candidates vie for this influential voting bloc, the evolution of South Korea’s crypto policies will likely set important precedents for Asia’s broader digital asset future.