tl;dr
South Korea, shaken by martial law six months ago, elected Lee Jae-myung as president in a snap election following former president Yoon Suk-yeol's impeachment. Lee won with 49.42% of the vote amid a historic 79.4% turnout. He plans crypto reforms including legalizing spot Bitcoin ETFs and launching...
South Korea has elected Lee Jae-myung as its new president amid recovery from martial law imposed six months ago. Lee won the snap election with 49.42% of the vote, in an election marked by a historic 79.4% voter turnout — the highest since 1997. This election followed the impeachment of former president Yoon Suk-yeol, who declared martial law in a failed power grab that paralyzed the legislature.
Lee’s administration plans to introduce significant cryptocurrency reforms, including legalizing spot Bitcoin exchange-traded funds (ETFs) and launching a won-pegged stablecoin designed to curb capital flight. During a recent policy forum, Lee emphasized the need to build a won-backed stablecoin market to prevent national wealth from leaving the country. South Korea currently stands as one of the most crypto-active nations globally but lags behind countries like the U.S. and Hong Kong in approving such crypto products.
Experts note that while the approval of spot Bitcoin ETFs now seems more likely under Lee’s administration, initiatives like the won-pegged stablecoin will demand careful navigation of regulatory frameworks, monetary policies, and technical challenges. In Q1 2025 alone, South Korean exchanges transferred $40.6 billion worth of cryptocurrencies abroad, mainly through stablecoins such as USDT and USDC, underscoring the urgency behind Lee’s plans.
Lee’s inauguration is scheduled for July 17, Constitution Day, symbolizing his view that the president is appointed by the people. Beyond crypto, his government aims to bolster the economy with pragmatic policies centered on artificial intelligence, semiconductors, and defense technologies. He also advocates for a reduced workweek of four and a half days, increased support for small businesses, expanded family tax deductions, and enhanced elderly care.
In contrast, former president Yoon, known as a pro-crypto reformer, struggled to advance deregulation efforts amid opposition from the Financial Services Commission and ended his term amidst political upheaval and a freeze on critical crypto legislation.