Cryptocurrency has emerged as a defining concern in South Korea’s snap presidential election, with candidates vying for assist from a rising base of digital asset traders throughout generations.
All three front-runners have rolled out crypto-friendly proposals. These embody the legalization of spot Bitcoin (BTC) exchange-traded funds (ETFs) and the easing of banking guidelines that presently limit fiat-to-crypto buying and selling to only 5 platforms.
The June 3 vote is slated to come back round two years early, triggered by the impeachment of former president Yoon Suk-yeol after his controversial declaration of martial law in late 2024. Although shortly overturned by lawmakers, the abrupt energy seize led to a political disaster and his eventual elimination from workplace.
Yoon’s 2022 marketing campaign leaned closely on guarantees to reform crypto laws — largely geared toward youthful voters. This time, the political concentrate on digital property has solely intensified, as older generations start to pour vital wealth into digital property.
Presidential election debate conflict on stablecoins
This election has three main candidates, and all of them have promised to advance the native crypto financial system.
Lee Jae-myung of the opposing Democratic Social gathering misplaced to Yoon within the final election and returns with a second crypto-friendly marketing campaign.
Kim Moon-soo is working below the present ruling social gathering, the Folks Energy Social gathering (PPP). Former president Yoon has distanced himself from the PPP forward of the election, leaving Kim to outline a brand new course for the fractured conservative base.
Lee Jun-seok was as soon as the youngest-ever chief of the PPP. He’s now main his personal newly shaped Reform Social gathering, a minor social gathering he based in January 2024 after splitting with the ruling bloc.
“The political sphere has actively embraced [cryptocurrencies] as a key marketing campaign agenda,” Park Sung-jun, head of the Blockchain Analysis Middle at Dongguk College, advised Cointelegraph.
“Pushed by the transition to a digital financial system, the push for transparency in political funding, the unfold of blockchain-based political participation applied sciences and rising calls for for investor safety, [crypto] has emerged as a major financial, social and political concern in South Korea.”
Lee Jae-myung and Kim have each pledged to ease strict banking guidelines that require crypto exchanges to accomplice with licensed banks to supply fiat providers — a system that has created a near-monopoly of simply five approved platforms. The construction in place excludes company participation, because it requires customers to open accounts at accomplice banks utilizing their authorized identities.
Lee has additionally proposed launching a stablecoin pegged to the won to cut back reliance on tokens issued overseas.
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Lee Jun-seok pushed back, noting that South Korea as soon as had a won-pegged algorithmic stablecoin, TerraKRW (KRT), a part of the Terra ecosystem that suffered a multibillion-dollar collapse.
“Lee Jae-myung proposes launching one other stablecoin with out presenting any safeguards. What property will again it? How will market dangers be dealt with? How will we keep away from repeating previous failures? There aren’t any solutions,” Lee Jun-seok mentioned in a Fb post, criticizing his opponent for turning stablecoins right into a “slogan.”
The 2 candidates clashed once more on stablecoins throughout a reside debate, the place Lee Jae-myung argued for the security of centralized and fiat-backed stablecoins.
Lee Jae-myung was Yoon’s opponent within the 2022 election when he additionally championed crypto-friendly policies. Nonetheless, he was much less aggressive than Yoon, who made a number of pro-crypto pledges. A few of them, like lifting bans on play-to-earn (P2E) gaming and preliminary coin choices, had been by no means carried out.
Lee Jun-seok reportedly known as gaming South Korea’s “second semiconductor business,” which made up greater than a fifth of the nation’s whole exports in 2024. He pledged to focus on 10% of the worldwide gaming market via regulatory assist in taxation, exports and expertise growth. He added that laws that dismiss blockchain-based P2E video games speed up the exodus of artistic industries.
P2E video games stay banned below local regulations, however curiosity has lately surged amongst traders following the launch of a new title by Nexon, one in every of South Korea’s largest recreation builders, together with a brand new cryptocurrency tied to its in-game financial system.
Crypto guarantees check previous and new voter bases
South Korea had 9.7 million Know Your Buyer-verified crypto traders by the tip of 2024, a 25% improve from the primary half of the yr, according to the Monetary Intelligence Unit (FIU). Traders of their 30s noticed the largest development, up 29%, adopted by these of their 40s (27%), whereas traders over 50 elevated by 25%.
The FIU’s findings present that older traders have bigger holdings. By year-end, 221,000 traders held at the very least 100 million received (about $73,000) in crypto. Of these, 172,500 — or 78% — had been over 40.
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In February, the pinnacle of the monetary business affiliation urged regulators to approve Bitcoin and Ether ETFs, citing rising demand amongst older traders. He argued that ETFs provide safer publicity than direct funding.
The approval of Bitcoin ETFs has been a key marketing campaign pledge for each Lee Jae-myung and Kim. The transfer follows rising world momentum after the US, the world’s largest market and a key South Korean buying and selling accomplice, gave the inexperienced mild to identify Bitcoin ETFs in early 2024.
“Cryptocurrencies play a sure position in our society, however they’re in the end one of many world developments. Because the US took the lead, we’ve ended up following in its footsteps. It’s a bit disappointing — we may have taken the lead ourselves,” Cho Jaewoo, assistant professor of social science at Hansung College, advised Cointelegraph.
Nonetheless, the nation’s Capital Markets Act is a barrier that doesn’t acknowledge crypto as eligible property underlying ETFs. The Monetary Companies Fee (FSC) can also be reviewing authorized pathways to permit Bitcoin ETFs below its devoted crypto committee.
Lee forward in presidential election voter survey
Yoon’s failed coup accelerated the presidential election and introduced renewed urgency to unresolved points within the native crypto business.
“Within the 2022 presidential election, cryptocurrency was seen as speculative and untrustworthy. However by the 2025 election, it had emerged as a key coverage concern, with main candidates pushing for institutionalization and monetary productization in response to the funding realities confronted by younger individuals,” Park from Blockchain Analysis Middle mentioned.
South Korea is without doubt one of the world’s largest crypto markets. In Q1 2024, the Korean received ranked because the most-traded fiat currency against crypto, pushed largely by retail traders. Institutional gamers stay on the sidelines, awaiting their flip because the FSC prepares to launch pilot buying and selling for skilled traders.
Crypto insurance policies had been as soon as seen as marketing campaign methods to sway youthful voters, however this yr, they’re seen as an financial and social concern that impacts a number of generations. On this election, older generations are coming into the digital sphere, accelerating requires regulated funding automobiles, similar to ETFs.
“Issues have modified rather a lot. There have been even questions and solutions about digital property in the course of the presidential debates, and associated discussions appear to be way more lively. Previously, individuals checked out it with skepticism, however now it seems like the general public is approaching it extra neutrally and making their very own judgments,” Cho mentioned.
Lee Jae-myung and Kim are the 2 main candidates, in line with native media surveys, with Lee main Kim at 44.9% to 35.9%, in line with a survey carried out from Could 23 to 25. Lee Jun-seok is much behind at 9.6%, although he gained nearly 3% from the preliminary survey carried out per week prior.
The twenty first presidential election is scheduled to happen on June 3.
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