South Korea's three major presidential candidates have publicly endorsed the legalization and support of Bitcoin exchange-traded funds (ETFs), signaling a significant shift towards embracing institutional cryptocurrency investment within the country. This announcement precedes the June 2025 presidential election and marks a potential pivot from previous regulatory bans that limited crypto market growth primarily to retail investors.
Key figures, including Lee Jae-myung, Democratic Party leader and frontrunner, have committed to pro-crypto policies if elected, aiming to modernize South Korea's financial landscape and stimulate economic growth. Industry experts like Ki Young Ju, CEO of CryptoQuant, have confirmed unanimous support among candidates for Bitcoin spot ETFs and wider institutional participation.
The anticipated regulatory changes could lead to increased liquidity and larger institutional inflows into South Korea's cryptocurrency markets, particularly benefiting Bitcoin and future ETF products. This is expected to stabilize market volatility, shift trading dynamics from mostly retail-driven activity to a more mature market, and align South Korea with other nations that have adopted crypto-friendly regulatory frameworks.
Beyond financial markets, these developments may encourage technological advancements in blockchain and crypto infrastructure, strengthening South Korea’s position in the global crypto sector. If these promises translate into government action, South Korea could become a significant hub for institutional crypto investments, fostering innovation and attracting capital on a broad scale.