South Korea has elected pro-cryptocurrency candidate and opposition leader Lee Jae-myung as president following a snap election. Following a June 3 election triggered by months of political turmoil, Lee secured over 49% of the vote, defeating conservative People Power Party candidate Kim Moon-soo, who garnered 41%, according to near-final data from the National Election Commission. The snap vote took place six months after former President Yoon Suk-yeol declared martial law in response to nationwide protests, leading to his ouster and the dissolution of his government. Lee, representing the center-left Democratic Party, positioned himself as a stabilising force while campaigning on economic reform and digital innovation, including strong support for cryptocurrency development. What does Lee’s victory mean for crypto in South Korea? Lee’s victory places a pro-crypto leader at the helm of one of Asia’s most active digital asset markets. His campaign included pledges to approve spot Bitcoin exchange-traded funds (ETFs), integrate digital assets into national pension strategies, and launch a Korean won-backed stablecoin to curb capital flight. He has also called for the restructuring of South Korea’s crypto banking framework, specifically criticising the restrictive “one exchange, one bank” rule that limits competition. His party has taken an aggressive approach to crypto regulation and policy in recent months. In May, it formed a dedicated Digital Asset Committee to address industry roadblocks, enhance investor protection, and create a more flexible regulatory environment. The committee has prioritised stablecoin oversight and has signalled plans to introduce licensing standards for issuers. The Democratic Party also introduced the Digital Asset Promotion Basic Act, a draft bill aimed at establishing a unified legal framework for regulating digital assets. It seeks to clarify the roles of regulatory agencies, strengthen compliance requirements for crypto businesses, and create pathways for the institutional adoption of tokenised securities. Separately, the party has proposed raising the crypto gains tax threshold from 2.5 million won to 50 million won (roughly $36,000), in a bid to shield retail investors while maintaining taxation for high-net-worth traders. The new structure would align crypto taxation with South Korea’s capital gains rules for traditional stock investments. Lee’s pro-crypto stance dates back to his 2022 presidential bid , when he explored NFTs as campaign fundraising tools and backed crypto donations to appeal to young, tech-savvy voters. While it remains to be seen how quickly Lee will act on his crypto-related agenda, his administration enters office with strong political capital and a clear mandate for reform. South Korea’s crypto appetite South Korea is one of the most crypto-engaged nations in the world, with an estimated 16 million citizens involved in digital asset trading. The local market has consistently demonstrated strong activity, with platforms such as Upbit and Bithumb reporting high trading volumes. On election night, Bitcoin prices briefly spiked to 149 million won (around $108,480) on domestic exchanges, reflecting a 2% kimchi premium compared to global markets. The post South Korea elects pro-crypto President Lee Jae-myung — here’s what he vows to deliver appeared first on Invezz
