SEOUL — South Korea’s ruling Democratic Party is urgently calling for measures to stabilize asset markets, including digital assets, as a sharp cryptocurrency downturn impacts an estimated 10 million investors in the country. The push comes amid a broader global crypto rout that has seen Bitcoin and other major digital assets fall sharply from recent highs, with South Korea—a nation known for its high retail participation—feeling acute pressure.
During a parliamentary debate on June 11 marking the first anniversary of the Lee Jae-myung administration, Hong Seong-guk, chairman of the party’s National Economic Advisory Council, identified the digital asset decline and a weakening South Korean won as “pressing issues requiring immediate policy attention.” He also warned of inflation risks from the prolonged Iran conflict and a semiconductor boom, as well as the need to adapt to post-war policy shifts expected from the Trump administration.
In parallel, the Democratic Party is actively considering the revival of its Digital Asset Task Force, an internal committee originally launched last September to craft policy recommendations for the crypto sector. The task force was dissolved when the floor leader’s term expired—a routine procedural matter—but the party now plans to reconstitute it once standing committees are formed, with a target completion date of June 18. A party official stated that the re-establishment is being viewed positively, signaling continued legislative engagement with digital asset regulation.
The developments highlight a growing recognition in Seoul that crypto markets are no longer peripheral but pose systemic risks to household wealth and consumer spending. With millions of retail investors facing losses and the won under pressure, the government faces mounting calls to deliver a coherent policy response that could influence regulatory trends across Asia.
