This week’s presidential election marks a significant step forward for the South Korean crypto landscape, as both candidates have pledged to refine crypto regulations and expand access to the country.
According to a Bloomberg report published on 2 June 2025, approximately 18 million people actively participate in crypto-related activities in South Korea. Furthermore, there have been instances where South Korea’s domestic crypto exchanges have recorded a higher trade turnover than the KOSPI and KOSDAQ stock indices.
Data published by the Bank of Korea shows that South Koreans held crypto assets worth 104 trillion won ($74.5 billion) during the later stages of 2024.
NEWS: South Korea’s presidential candidates vow to legalize spot crypto ETFs, ease rules, and launch a won-backed stablecoin. pic.twitter.com/jAfVYp4Gxm
— CoinGecko (@coingecko) June 2, 2025
The growing importance of this asset class has prompted both candidates, Lee Jae-myung and Kim Moon-soo, to adopt pro-crypto policies in their campaigns.
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Presidential Candidates Lee and Kim Aligned on Legalising Spot Crypto ETFs
Lee has advocated for legalising spot crypto exchange-traded funds (ETFs) and further hopes to be able to invest the country’s $884 billion national pension fund into cryptocurrencies.
Moreover, he also plans to modernise South Korea’s financial system by issuing stablecoins backed by the South Korean won. During a policy discussion meeting in May, he had said, “We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.”
Additionally, Lee has also advocated for loosening some of the banking restrictions that required crypto exchanges to partner up with licensed banks to offer fiat services.
However, some of the reforms proposed by Lee have faced backlash in the region. The Bank of Korea Governor Rhee Chang-yong has cautioned against stablecoins issued by non-banking institutions.
He explained that doing so would undermine the effectiveness of the monetary policies of the country. He has advocated for the central bank to be the only institution to be able to create won-backed stablecoins.
Kim, on the other hand, also supports legalising spot crypto and has lent his support to Lee in this matter in a rare moment of bipartisan alignment. Furthermore, similar to Lee, Kim also plans to ease regulations and expand crypto adoption.
A poll conducted on 28 May 2025 by Gallup Korea, a South Korean research company specialising in public opinion surveys and market research, revealed that 49% of the respondents favoured Lee, while 39% of the respondents picked Kim as their presidential candidate.
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Increased South Korean Crypto Participation Hastened Crypto Regulations
South Korea’s increased retail crypto participation, along with its experience in the past with crypto frauds, hastened new regulations through which the country intends to ensure greater transparency, security, and trust in the cryptocurrency ecosystem.
Strict regulations (Virtual Asset User Protection Act) were brought into focus in July 2024. They imposed strict requirements on crypto exchanges that included potential life sentences for criminal violations.
South Korea’s Financial Services Commission, on 20 May 2025, established new regulations for non-profit crypto transactions and tightened listing criteria for exchanges.
Furthermore, the South Korean Democratic Party kick-started a Digital Asset Committee to develop crypto policies and promote industry growth.
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Key Takeaways
- Presidential candidate Lee hopes to invest South Korea’s $884 billion national pension fund into cryptocurrencies
- Both presidential candidates Lee Jae-myung and Kim Moon-soo are aligned in legalising spot crypto ETFs
- Candidate Lee plans to modernise South Korea’s financial system by issuing stablecoins backed by the South Korean won
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