South Korea’s Election Centers on Crypto ETF and Market Reforms

• Both candidates support the legalization of crypto ETFs and the easing of crypto rules.
• Nearly 18 million South Koreans are active in crypto trading and investments today.
• South Korea’s crypto reforms differ from the US in that they focus on rules and access.

South Korea’s June 3 presidential election places cryptocurrency reforms at its center. Both leading candidates, Kim Moon-soo of the People Power Party (PPP) and Lee Jae-myung of the Democratic Party of Korea (DPK), have pledged policies to expand crypto adoption. Both candidates support legalizing spot crypto ETFs and easing investment barriers, signaling a shift toward integrating digital assets into the national economy. 

Bipartisan Push for Crypto Reform

Lee Jae-myung has promised to approve spot cryptocurrency ETFs and allow the National Pension Service (NPS), which manages $884 billion, to invest in digital assets. He publicly announced these pledges on May 6, 2025. Lee’s proposals aim to broaden investment opportunities and match South Korea with global financial trends.

Similarly, Kim Moon-soo supports legalizing spot crypto ETFs and plans to ease regulations surrounding cryptocurrency. Kim proposes tax relief for small investors and wants to remove the “one exchange, one bank” rule, which makes it easier for exchanges to partner with banks. This change would increase banking access for crypto platforms and users. Both candidates’ stances reflect a rare bipartisan consensus in South Korean politics.

According to a Korean poll from May 28, 49% support Lee while 36% back Kim. This news arrives as people in Korea become more interested in crypto, whose value exceeds $74 billion. The political momentum is clearly shifting toward embracing cryptocurrency as a key economic driver.

South Korea’s Crypto Landscape and Market Activity

According to a study published on June 2, 2025, South Korea has a significant engagement with crypto. Nearly 18 million individuals participate in trading, investing, or using cryptocurrencies regularly. South Korean crypto exchanges often surpass the transaction volumes of major stock indices, such as KOSPI and KOSDAQ.

Both Lee and Kim aim to modernize South Korea’s financial system by integrating digital assets. Allowing the NPS to hold digital assets is a sign that Lee thinks crypto has a role in boosting the country’s wealth. 

Meanwhile, Kim supports plans for tax incentives and changes to banking laws to boost interest in smaller-level crypto usage. These policies, combined, make it clear that South Korea aims to become one of the leading supporters of Web3 and crypto worldwide.

Related: South Korea Blocks 14 Crypto Apps Amid Regulatory Crackdown

Comparing Political Crypto Strategies: South Korea and the U.S.

Political figures worldwide are leveraging cryptocurrency in unique ways. Donald Trump’s 2024 U.S. presidential campaign embraced crypto directly, branding himself a “crypto president.” The Trump administration initiated the U.S. Strategic Bitcoin Reserve and introduced the $TRUMP meme coin, which has a market value of approximately $5 billion. Trump also received crypto support from individuals like Jesse Powell and the Winklevoss brothers, who are prominent leaders in the cryptocurrency sector.

Candidates in South Korea pay more attention to changes in regulations and the introduction of crypto in official institutions, rather than starting personal crypto projects. Lee and Kim are aiming to integrate cryptocurrency into national financial infrastructures by developing new regulatory policies.

They highlight that cryptocurrencies are now important topics discussed worldwide in politics and economics. Could the upcoming regulatory reforms in South Korea be what sparks the next wave of Web3?

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