South Korea's Presidential Candidates Unite on Pro-Crypto Policies Ahead of Snap Election

South Korea is set to hold a snap presidential election on June 3, 2025, following the impeachment of former President Yoon Suk-yeol. The country’s leading candidates, including Lee Jae-myung (Democratic Party) and Kim Moon-soo (People Power Party), have both embraced pro-crypto platforms, promising to ease regulations and expand access to cryptocurrencies.

Lee Jae-myung has proposed legalizing spot crypto exchange-traded funds (ETFs) and allowing the nation’s $884 billion pension fund to invest in cryptocurrencies. He also supports issuing a stablecoin backed by the South Korean won to modernize the financial system and curb capital outflows. Lee aims to ease stringent banking rules requiring crypto exchanges to partner with licensed banks for fiat services.

Kim Moon-soo has publicly backed Lee’s proposal to legalize spot crypto ETFs and has also committed to regulatory easing to promote crypto adoption. This bipartisan alignment signals strong political consensus toward fostering the crypto ecosystem in South Korea.

South Korea is known for high retail crypto participation, with over 18 million people—more than one-third of the population—involved in cryptocurrency trading. The country’s crypto market is highly active, with daily trading volumes sometimes surpassing major stock indices.

Recent regulations introduced in July 2024 imposed strict requirements on exchanges, including potential severe penalties for criminal violations. The Financial Services Commission also finalized new guidelines to tighten control over nonprofit crypto sales and exchange listings.

The Democratic Party has established a Digital Asset Committee focused on developing supportive crypto policies and promoting industry growth, reflecting the increased political prioritization of digital assets in the country.

This election appears to be a clear win for South Korea's crypto industry regardless of the winner, as both major candidates are set to advance a more crypto-friendly regulatory landscape, which could invigorate the local economy and foster innovation.