KEY FACTS: In South Korea’s snap presidential election set for June 3, 2025, cryptocurrency has emerged as a central issue, driven by the nation’s 16 million crypto investors and growing interest across generations, including older demographics. Triggered by the impeachment of former President Yoon Suk-yeol following his controversial martial law declaration in 2024, the election features leading candidates: Lee Jae-myung (Democratic Party), Kim Moon-soo (People Power Party), and Lee Jun-seok (New Reform Party), proposing crypto-friendly policies like legalizing spot Bitcoin ETFs, introducing a won-based stablecoin, and easing banking restrictions.

---

Three leading presidential candidates have promised pro-crypto policies.

---

Cryptocurrency Emerges as Key Issue in South Korea’s Snap Presidential Election

As South Korea gears up for a pivotal snap presidential election on June 3, 2025, cryptocurrency has unexpectedly taken center stage, transforming from a niche financial topic into a defining policy issue. With the nation still reeling from the political upheaval caused by the impeachment of former President Yoon Suk-yeol, candidates are leveraging the growing popularity of digital assets to appeal to a broad and increasingly diverse voter base, including younger generations and, notably, older demographics showing newfound interest. The election, triggered by Yoon’s controversial declaration of martial law in late 2024, has thrust crypto-friendly policies into the spotlight, with all three leading candidates proposing measures to liberalize and regulate the digital asset market.

South Korea’s political scene has been tumultuous since December 2024, when former President Yoon Suk-yeol’s short-lived attempt to impose martial law led to his impeachment and removal from office in April 2025. The ensuing political crisis has set the stage for a snap election, with candidates vying to restore stability and address pressing economic concerns, including record-high youth unemployment and a cost-of-living crisis. Amid this backdrop, cryptocurrency has emerged as a surprising focal point, reflecting the nation’s status as one of the world’s largest crypto markets.

According to Park, a researcher at the Blockchain Research Center, cryptocurrency was largely dismissed as a speculative and risky venture in the 2022 presidential election. It was viewed with skepticism by mainstream voters and policymakers alike. However, by 2025, the landscape will have shifted dramatically. In park's words:

“In the 2022 presidential election, cryptocurrency was viewed as speculative and untrustworthy. But by the 2025 election, it had emerged as a key policy issue, with major candidates pushing for institutionalization and financial productization in response to the investment realities faced by young people...”

This shift is driven by the growing adoption of digital assets across generations. South Korea boasts over 16 million crypto investors, with 9.7 million verified investors actively participating in the market. Notably, older demographics, traditionally more conservative in their investment choices, are increasingly engaging with cryptocurrencies, drawn by the promise of high returns and innovative financial products. This broadening appeal has compelled candidates to craft policies that resonate with both tech-savvy younger voters and older generations seeking new investment opportunities.

The three front-runners in the presidential race: Lee Jae-myung of the Democratic Party, Kim Moon-soo of the People Power Party, and Lee Jun-seok of the New Reform Party, have each rolled out ambitious crypto-friendly proposals to capture the growing crypto voter base. Their platforms reflect a recognition of South Korea’s significant role in the global crypto market and the need to modernize regulations to foster innovation while protecting investors.

Lee Jae-myung’s Vision for a Crypto-Friendly South Korea

Lee Jae-myung, the Democratic Party’s candidate and current frontrunner with 51% support in recent Gallup Korea polls, has made cryptocurrency a cornerstone of his campaign. On May 6, 2025, Lee pledged to legalize spot Bitcoin exchange-traded funds (ETFs), lower transaction fees, and create a “safe investment environment” for young people to build assets and plan for their future. His proposals aim to address the economic frustrations of South Korea’s youth, a key demographic in the election, by providing more accessible investment opportunities.

Lee has also proposed the introduction of a South Korean won-based stablecoin to curb capital outflows, which have been a significant concern for regulators. Between January and March 2025, South Korean crypto exchanges recorded 56.8 trillion won ($40.8 billion) in asset outflows, nearly half of which were linked to foreign stablecoins. According to Lee, introducing a domestic stablecoin will help to retain capital within South Korea and reduce reliance on U.S. dollar-based alternatives. However, this proposal has sparked debate, with economists like Shin Bo-sung of the Korea Capital Market Institute warning that stablecoins could inflate the money supply and shift monetary control to private issuers.

To facilitate his crypto agenda, Lee has advocated for an integrated monitoring system and lower transaction fees, emphasizing government oversight to ensure consumer protection. His Democratic Party has also established a Digital Asset Committee, launched on May 13, 2025, to develop comprehensive crypto policies and promote industry growth. The committee, chaired by National Assembly Chairman Min Byeong-deok, includes executives from major local exchanges like Upbit, Bithumb, Coinbit, and Gopax, signaling a collaborative approach between policymakers and industry leaders.

Kim Moon-soo’s Regulatory Sandbox and Conservative Appeal

Kim Moon-soo, representing the conservative People Power Party, trails Lee with 29% support in recent polls but has also embraced crypto as a key issue. Kim’s platform includes a proposal for a regulatory sandbox, a controlled environment where crypto businesses can test innovative products under relaxed regulations. This approach aims to foster innovation while maintaining oversight, appealing to voters who value both economic growth and financial stability.

Kim’s campaign has also promised to legalize spot Bitcoin ETFs and dismantle the controversial “one-exchange-one-bank” rule, which restricts crypto exchanges from partnering with a single bank for fiat-to-crypto transactions. This rule has limited the growth of South Korea’s crypto market by constraining trading to just five platforms. According to Kim, easing these restrictions will attract institutional investors and boost market liquidity. However, his party’s failure to deliver on similar promises during Yoon’s presidency has raised skepticism about his ability to implement these reforms.

Lee Jun-seok’s Gaming and Crypto Synergy

Lee Jun-seok of the New Reform Party has taken a unique angle by focusing on the intersection of cryptocurrency and South Korea’s gaming industry, which he describes as the country’s “second semiconductor industry.” Gaming accounted for more than a fifth of South Korea’s total exports in 2024, and Lee Jun-seok sees potential in integrating crypto with play-to-earn (P2E) gaming models. Despite P2E games remaining banned under local regulations, interest has surged following the launch of a new title by Nexon, one of South Korea’s largest game developers, accompanied by a cryptocurrency tied to its in-game economy. Nexon’s shares have soared as a result, underscoring the economic potential of this sector.

Lee Jun-seok’s proposal to lift the ban on P2E gaming and support crypto integration aims to capitalize on this trend, appealing to younger voters and tech enthusiasts. His platform also includes support for spot Bitcoin ETFs, aligning with the broader pro-crypto sentiment among candidates.

The candidates’ crypto-friendly rhetoric comes at a time when South Korea’s regulators are tightening oversight of the digital asset market. On May 20, 2025, the Financial Services Commission (FSC) announced new compliance rules effective in June, aimed at preparing the market for institutional entry. These measures include stricter Know Your Customer (KYC) requirements, guidelines for nonprofit crypto sales, and enhanced listing standards for exchanges. For example, only cryptocurrencies listed on at least three major domestic exchanges will be eligible for nonprofit donations, and exchanges are barred from selling tokens on their own platforms to prevent conflicts of interest.

The FSC’s Virtual Asset Committee, established in late 2024, has been instrumental in shaping these policies. The committee is also overseeing plans to allow corporate entities to open crypto trading accounts by late 2025, requiring businesses to comply with KYC and Anti-Money Laundering (AML) regulations. These changes signal a shift toward greater institutional involvement in South Korea’s crypto market, which has historically been dominated by retail investors.

The focus on cryptocurrency in the election reflects economic challenges facing South Korea. The nation’s youth, grappling with high unemployment and limited economic opportunities, have turned to crypto as a means of wealth-building. Candidates like Lee Jae-myung have framed their crypto policies as a response to these economic realities, promising to create opportunities for young people to “build assets and plan for the future.”

Meanwhile, the political fallout from Yoon’s impeachment continues to shape the campaign. The conservative People Power Party has struggled to unify behind Kim Moon-soo, with internal rifts exposed during the nomination process. Kim’s rival, former acting President Han Duck-soo, briefly entered the race but failed to secure the party’s nomination, highlighting the challenges facing conservatives in mounting a competitive challenge against Lee Jae-myung.

On the international stage, candidates are also navigating complex trade and security dynamics, particularly with the United States. Lee Jae-myung has advocated for a cautious approach to trade negotiations with the Trump administration, while Kim Moon-soo has expressed openness to discussing cost-sharing for U.S. military presence in South Korea. These issues intersect with crypto policy, as candidates seek to balance economic innovation with geopolitical stability.

As the June 3 election approaches, cryptocurrency is poised to play a defining role in shaping South Korea’s economic and political future. The candidates’ pro-crypto pledges, including the legalization of spot Bitcoin ETFs, the introduction of a won-based stablecoin, and the easing of banking restrictions, reflect a broader recognition of digital assets as a legitimate and growing part of the economy. However, the success of these policies will depend on the next president’s ability to navigate regulatory challenges, address economic inequalities, and restore public trust in the wake of recent political turmoil.

---

---

Information Sources:

• Youtube
• cointelegraph
• Cointelegraph

---

---

If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!

This post was created via INLEO. What is INLEO?

INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application, Inleo.io, allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.

---

---

Let's Connect

Hive: inleo.io/profile/uyobong/blog

Twitter: https://twitter.com/Uyobong3

Discord: uyobong#5966

---