South Korea's Crypto Future Shifts as Newly Elected President Lee Jae-Myung Promises Regulatory Reforms

Crypto-Friendly Leader Takes Charge in South Korea Amidst Political Turmoil

South Korea has ushered in a new era of crypto reform with the election of Lee Jae-myung, the leader of the Democratic Party, as the country's new President. This comes just six months after the nation was shaken by martial law imposed by the previous administration.

Lee, who narrowly lost to former President Yoon Suk-yeol in 2022, had previously experimented with NFTs and pledged to legalize spot Bitcoin exchange-traded funds (ETFs) while proposing a won-pegged stablecoin to prevent capital flight. With Lee's decisive victory—securing 49.42% of votes compared to Yoon's 41.15%—the likelihood of these crypto-friendly policies being implemented has significantly increased.

During his campaign, Lee emphasized the need to "establish a won-backed stablecoin market to prevent national wealth from leaking overseas." This proposal addresses concerns raised in early 2025 when South Korean exchanges moved $40.6 billion in crypto abroad, nearly half of which was in stablecoins like USDT and USDC.

Market Analysts Optimistic About Crypto Reforms

Analysts at Presto Research believe Lee's election makes spot Bitcoin ETF approval more likely. "It's somewhat ironic that South Korea—one of the most crypto-active countries globally—still lags behind peers like the U.S. and Hong Kong on this front," said Min Jung, an analyst at the firm.

However, Jung cautioned that launching a stablecoin would require "more careful deliberation, particularly around regulatory frameworks, monetary policy coordination, and technical implementation."

Broader Economic Agenda

Beyond crypto initiatives, Lee has promised:

• A "pragmatic and market-oriented" economic policy
• Investments in AI, semiconductors, and defense technology
• A four-and-a-half-day workweek
• Expanded support for small businesses
• Tax deductions for families
• Improved elderly care services

The new President will be inaugurated on July 17 (Constitution Day) in a symbolic "Appointment Ceremony" reflecting his belief that "the people appoint the president." With Lee Jae-myung leading the country, South Korea's crypto landscape appears poised for significant transformation as the nation embraces a more progressive, innovation-driven future.