Lee Jae-myung wins in South Korea, promises ETFs and KRW stablecoins
- South Korean President Backs Cryptocurrency ETFs
- Won-pegged stablecoins gain regulatory priority
- South Korea seeks innovation in special blockchain regions
Lee Jae-myung was officially named South Korea's president on Wednesday after winning 49,42 percent of the vote in the presidential election, beating conservative Kim Moon-soo's 41,15 percent. The election saw a 79,4 percent turnout, the highest in nearly three decades, reflecting popular interest in sweeping political and economic change.
Lee Jae-myung (center-left) is the new president of South Korea 🇰🇷
He said his main mission was to overcome the civil war, prevent military coups, restore democracy and build a country where the people are sovereign, living in respect, not in hatred and division. pic.twitter.com/ZqBzc49iWB
— Asia Update (@updateasiatico) June 3, 2025
With a pro-cryptocurrency stance, Lee advocates the local introduction of spot cryptocurrency exchange-traded funds (ETFs). Currently, such financial products remain banned in the country, despite their success in the United States. His proposal aims to expand Korean investors' access to the regulated crypto asset market by offering safer and more transparent alternatives.
Another pillar of his economic agenda is the development of a domestic stablecoin market pegged to the South Korean won. During a recent discussion, Lee stated that “the country needs to establish a won-based stablecoin market to prevent domestic capital outflow.” The move aims not only to strengthen the domestic financial system but also to reduce dependence on foreign stablecoins.
The new government also intends to accelerate the implementation of the second phase of the regulatory framework for digital assets, which will specifically focus on regulating stablecoins and requiring greater transparency from local exchanges. The expectation is that these guidelines will promote greater security and trust among investors.
In addition, the president-elect proposes to reduce the regulatory burden in areas designated as special blockchain zones. The goal is to create environments that are favorable to innovation, with less bureaucracy and more incentives for startups and decentralized technology projects.
While former President Yoon Suk-yeol also made promises aimed at the crypto sector, his tenure was marked by clashes with the Financial Services Commission (FSC), which maintained a rigid stance during his tenure. The FSC, however, has shown signs of easing, which could favor Lee’s plans.
South Korea remains one of the most relevant markets in the world for cryptocurrency trading, with around 9,7 million users registered with brokers — a number that represents approximately 20% of the country's total population.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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