A country shaken by martial law just six months ago has elected a new leader with plans for crypto reform.
Lee Jae-myung, the leader of South Korea’s Democratic Party, was sworn in as President on Wednesday after securing a decisive victory in a June 3 snap election.
With 99% of votes counted, Lee won 49.42% to rival Kim Moon-soo’s 41.15%, amid a historic 79.4% voter turnout, the highest since 1997.
The snap election came as a result of former president Yoon Suk-yeol's impeachment in December for declaring martial law in a failed power grab that paralyzed the nation’s legislature.
Lee, who narrowly lost to Yoon in 2022, had used that earlier campaign to experiment with NFTs bearing his image and pledges, in an effort to connect with younger voters.
In his latest run, he expanded on those ideas, pledging to legalize spot Bitcoin exchange-traded funds (ETFs) and launch a won-pegged stablecoin to prevent capital flight.
“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,” he said during a May policy forum.
“With Lee Jae-myung now elected, the likelihood of seeing a spot ETF approved has significantly increased,” Min Jung, an analyst at Presto Research, told Decrypt.
“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,” Jung said.
However, Jung warned that other initiatives, like launching a stablecoin, “will require more careful deliberation, particularly around regulatory frameworks, monetary policy coordination, and technical implementation.”
In Q1 2025, South Korean exchanges moved $40.6 billion in crypto abroad, nearly half in stablecoins like USDT and USDC, raising concerns over capital outflows that Lee’s proposed won-backed stablecoin aims to curb.
Lee’s full inauguration will take place on July 17, Constitution Day, in a symbolic “Appointment Ceremony” that his office says reflects his belief that “the people appoint the president.”
Apart from crypto, Lee has promised a “pragmatic and market-oriented” economic policy that includes investments in AI, semiconductors, and defense technology, as per a Yonhap News report.
He’s also advocating for a four-and-a-half-day workweek, expanded support for small businesses, tax deductions for families, and expanded elderly care services.
Former President Yoon, once hailed as a pro-crypto reformer, had promised to deregulate the industry in 2022 but achieved little during his tenure.
His administration faced pushback from the Financial Services Commission (FSC), and his term ended amid a political crisis and a freeze on key crypto bills.
Edited by Stacy Elliott.
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