South Korea Elects Pro-Crypto President Lee Jae-myung, Paving Way for Crypto ETFs and KRW Stablecoins
South Korea has ushered in a new era of leadership with the election of Lee Jae-myung, a progressive candidate who has made clear his ambition to modernize the country’s economy — with cryptocurrency policy playing a central role.
Lee officially secured the presidency on Wednesday, capturing 49.42% of the vote in a high-turnout election that saw nearly 80% of eligible voters cast ballots — the highest participation in 28 years. His opponent, conservative Kim Moon-soo, trailed with 41.15%. The election follows a turbulent chapter in South Korean politics marked by the impeachment of former president Yoon Suk-yeol after a controversial term defined by militaristic policies and stalled reform efforts, including in the crypto space.
As president, Lee has laid out a pro-crypto roadmap that includes legalizing spot cryptocurrency exchange-traded funds (ETFs) — a category currently prohibited under South Korean law despite growing international momentum, especially in the U.S. His administration also plans to support the development of Korean won-pegged stablecoins, aiming to strengthen domestic capital markets and reduce capital flight to offshore crypto assets.
In a recent public forum, Lee stressed the importance of building a transparent, regulated stablecoin ecosystem to support economic innovation. He also reaffirmed his commitment to finalize the second phase of South Korea’s digital asset regulatory framework, which will focus on exchange oversight and stablecoin issuance.
Beyond legislation, Lee has promised to ease restrictions in designated “blockchain special zones” — regions earmarked for fintech growth — to stimulate innovation while maintaining investor protections.
This is not South Korea’s first attempt at crypto-forward leadership. Former President Yoon had also campaigned on deregulation, but regulatory gridlock and resistance from the Financial Services Commission (FSC) hindered progress. Ironically, the FSC now appears more open to revisiting crypto rules — a shift that could amplify Lee’s chances of delivering on his promises.
South Korea remains one of the world’s most active crypto markets, particularly known for its enthusiastic altcoin trading community. As of late 2024, nearly 10 million South Koreans — about 20% of the population — held active accounts on crypto exchanges, according to data from the FSC.