Crypto Gains Political Ground as South Korea Heads to the Polls
As South Korea heads to the polls on Tuesday, one outcome is already clear: cryptocurrency will come out ahead no matter who wins.
Both leading presidential candidates—Lee Jae-myung and Kim Moon-soo—have made digital asset policy a centerpiece of their campaigns, signalling a rare moment of bipartisan alignment in South Korean politics.
Lee, who narrowly lost the 2022 election, has proposed legalising spot crypto ETFs and allowing the country’s $884 billion pension fund to invest in digital assets.
His conservative opponent, Kim Moon-soo of the People Power Party, supports the ETF proposal and has gone further, pledging to remove regulatory barriers for banks working with crypto exchanges and to lower taxes on gains earned by small investors and crypto entrepreneurs.
This convergence of policy priorities reflects the growing political influence of South Korea’s crypto-savvy population—now estimated at over 18 million people, or more than a third of the country.
🇰🇷 Crypto Wins Either Way in South Korea’s Election! 🗳️💥
As South Koreans prepare to vote on June 3, both presidential frontrunners — Lee Jae-myung (🏛️ Democratic) and Kim Moon-soo (🛡️ Conservative) — are racing to win the crypto vote.
💹 Legalize spot Bitcoin ETFs
💵 Launch… pic.twitter.com/2LIG0VAfIN
— Degen Station (@Deg3nstation) June 2, 2025
As digital assets become a mainstream issue, they are reshaping not only financial markets but also the national political agenda.
South Korean Watchdogs Introduce Tighter Controls for Protection
South Korea’s crypto landscape has experienced dramatic swings, with one of its most damaging setbacks occurring in 2022 when the TerraUSD stablecoin collapsed.
Spearheaded by South Korean developer Do Kwon, the failure wiped out over $40 billion in value, devastating countless retail investors and sparking a wave of public outrage.
In response, lawmakers enacted the Virtual Asset User Protection Act, which took effect in July 2024.
The legislation imposed sweeping new requirements on crypto exchanges: at least 80% of user funds must be held in offline cold wallets, insurance coverage is mandatory, and platforms must have contingency plans for hacks or system failures.
Executives found guilty of fraud now face severe penalties, including potential life imprisonment.
Attention has since shifted to the stablecoin market, which regulators fear could become a conduit for capital flight via foreign-pegged assets like USDT and USDC.
In the first quarter of 2025 alone, South Korean exchanges saw outflows totaling 56.81 trillion won—nearly half in dollar-backed stablecoins.
In an effort to counter this trend, presidential candidate Lee has proposed launching a won-pegged stablecoin, arguing that it could modernise the country’s financial system while keeping capital within national borders.
🇰🇷LATEST: South Korean presidential front-runner Lee Jae-myung vows to approve spot #Bitcoin ETFs and pledges to cut crypto exchange transaction fees if elected next month 👀 pic.twitter.com/wejhbRV15g
— CryptosRus (@CryptosR_Us) May 8, 2025
However, the proposal faces resistance.
South Korea’s central bank insists that only regulated financial institutions—not private companies—should be permitted to issue stablecoins tied to the won.
Crypto Opportunities Grow in South Korea
South Korea has firmly established itself as one of the world’s most active cryptocurrency markets.
On certain days, trading volumes on domestic crypto exchanges even surpass those of the nation’s primary stock indices, the Kospi and Kosdaq—highlighting the rising prominence of digital assets, particularly among younger investors who feel underserved by traditional financial systems.
This surge of interest has been further fuelled by rare political consensus: both leading presidential candidates have voiced strong support for crypto-friendly policies.
The bipartisan backing has reinvigorated optimism across the industry, attracting renewed attention from venture capitalists, startups, and blockchain developers.
According to Simon Seojoon Kim, CEO of Seoul-based Hashed Ventures, the outcome of the election is a win for crypto no matter who takes office.
The global landscape is amplifying this momentum.
In the US, President Donald Trump recently signed an executive order supporting crypto innovation—especially dollar-backed stablecoins—as a strategic move to strengthen the US financial system.
That announcement has spurred policymakers across Asia, including in South Korea, to accelerate their digital asset agendas in a bid to stay competitive.
By rallying behind pro-crypto leadership, South Korean voters are making a bold statement: the future of finance is digital, and they intend to lead the charge
