South Korea’s Democratic Party leader and presidential frontrunner, Lee Jae-myung, has vowed to legalize spot cryptocurrency exchange-traded funds (ETFs) and introduce a range of crypto-friendly policies if elected in the upcoming June 3 presidential race.
Lee unveiled his pro-crypto agenda on May 6, aiming to appeal to younger voters by promising a more inclusive and secure investment environment. “I will create a safe investment environment so that young people can build assets and plan for the future,” Lee said, according to The Korea Economic Daily. His proposal includes the legalization of spot crypto ETFs, a reduction in transaction fees, and enhanced consumer protection.
The Democratic Party of Korea, led by Lee, currently leads the polls with 42% support, based on a survey conducted by Korea’s National Barometer Survey from April 24 to 30. Acting President Han Duck-soo trails significantly with 13% support.
This marks Lee’s first direct mention of cryptocurrency policy on the presidential campaign trail, although his party had previously advocated similar reforms during the 2024 general elections. Despite earlier promises to push for ETF legislation, the initiative has yet to gain traction.
Lee’s chief rival, Kim Moon-soo of the ruling People Power Party, has also pledged pro-crypto reforms. In April, the party proposed legalizing spot crypto ETFs, lifting the restrictive one-exchange-one-bank rule, and developing clear regulations for stablecoins. The one-exchange-one-bank rule currently limits each crypto exchange in South Korea to partnering with a single local bank—a measure aimed at curbing money laundering and verifying trader identities.
Crypto has become a central issue in this election cycle, with nearly one-third of South Korea’s 51.7 million citizens reportedly holding a crypto trading account, according to industry estimates.
The race follows a period of political turmoil, including the recent impeachment of former President Yoon Suk Yeol. Yoon’s controversial decision to declare martial law in December triggered a sharp, albeit brief, crash in Bitcoin (BTC), Ether (ETH), and other digital assets. The Constitutional Court unanimously upheld his impeachment in April, formally removing him from office. Notably, Upbit and Bithumb made an agreement to compensate users for technical disruptions that happened during the martial law declaration.
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