South Korea Elects Pro-Crypto Candidate Lee Jae-Myung as President

• Lee Jae-myung won South Korea’s presidency, with a focus on advancing cryptocurrency adoption and innovation.
• Lee plans to introduce spot crypto ETFs and create a won-pegged stablecoin market to boost domestic crypto investments.
• Lee aims to overhaul South Korea’s digital asset regulatory framework, enhancing transparency and encouraging blockchain development.

Lee Jae-myung has been elected to be the next president of South Korea. Lee, who is in favor of cryptocurrencies, was announced as the winner of Wednesday’s presidential election. He got 49.42% of the votes, which was higher than his right-wing opponent Kim Moon-soo, who got 41.15%. More than 79% of registered voters cast their ballots in the election, marking the highest rate in 28 years. Lee winning the election means South Korea may take a fresh view on cryptocurrency and digital assets. Among his plans are a number of crypto-friendly measures to advance the South Korean digital asset business.

Pro-Crypto Plans for South Korea’s Future

Some of Lee Jae Myung’s election promises include far reaching changes to South Korea’s view on cryptocurrency. Among his key proposals will be that of spot crypto exchange-traded funds (ETFs) to be introduced in the country. Other nations including the U.S. have backed the use of cryptos ETFs, but the South Korean government has so far banned the issuance and trading of crypto ETFs.

Lee wants to encourage innovation by letting local companies use these financial products. His efforts could put South Korea in pole position among cryptocurrency adoption. Another major aspect of Lee’s platform is the development of a stablecoin market in South Korea. 

Specifically, he aims to establish stablecoins pegged to the Korean won. Lee has argued that such a move is essential to prevent capital outflows. By creating a won-pegged stablecoin market, Lee hopes to provide stability and encourage domestic investment in the crypto space.

South Korea’s Digital Asset Regulatory Framework

Under Lee’s leadership, South Korea is set to advance its digital asset regulatory framework. The country is working on a two-part legislation that will govern the digital asset market. Lee has committed to passing the second part of this legislation, which focuses on stablecoin regulation and exchange transparency. These steps are expected to increase accountability and clarity in the rapidly growing crypto sector.

In addition, Lee has vowed to minimize regulations in areas designated as special zones for blockchain development. His goal is to maximize innovation and efficiency in these regions, ensuring that South Korea remains competitive in the global blockchain ecosystem. These initiatives reflect Lee’s commitment to making South Korea a hub for digital asset innovation.

Challenges and Historical Context

Lee was chosen president following the impeachment of Yoon Suk-yeol. Yoon also said he would change regulations for cryptocurrencies, although not much was achieved during his term. The Financial Services Commission (FSC), in charge of regulating financial markets, opposed a lot of Yoon’s policies. However, lately the FSC has been more willing to relax strict regulations related to cryptocurrency. Lee might gain support for his crypto-driven goals because of this change.

Nearly 10 million people in South Korea are using cryptocurrencies which makes it one of the largest crypto markets globally. It was estimated last year that around 20% of the population of the country are involved in trading cryptocurrencies. Because Lee supports cryptocurrencies, the market is set to keep expanding and improving.
Lee Jae-myung’s win shows that South Korea will pay more attention to the crypto industry. His administration works to improve digital assets’ conditions, by supporting both new ideas and regulations.