The newly elected South Korean President is aiming for a breakthrough in the cryptocurrency market with the introduction of spot ETFs and a national stablecoin.
On June 4, South Korea officially elected Lee Jae-myung as its new President. The candidate from the left-wing party secured victory following the impeachment of former leader Yoon Suk-yeol, who ended his three-year term after a failed attempt to establish a military-backed government.
Voter turnout reached 79.4%, the highest in the last 28 years. Lee won 49.42% of the vote, defeating his conservative opponent Kim Moon-soo, who garnered 41.15%.
The new President’s pledges
In addition to traditional economic priorities such as supporting low-income families and small businesses, Lee Jae-myung has placed digital assets at the heart of his political agenda.
The core pillar of Lee’s strategy involves the introduction of spot ETFs for Bitcoin and Ethereum in the domestic market. Currently, the issuance and local trading of crypto ETFs remain banned in the country.
Another key element of the plan is the approval of stablecoins pegged to the South Korean won. During a discussion last month, Lee emphasized the need to develop a won-based stablecoin market to prevent capital flight abroad.
Under the new administration, South Korea will also work to complete the second phase of its regulatory framework for digital assets. The upcoming legislation will specifically address stablecoin regulations and transparency requirements for cryptocurrency exchanges.
The program also includes the creation of special zones for blockchain-related businesses, where regulations will be minimized to maximize innovation and operational efficiency.
However, this isn’t the first time South Korea has elected a crypto-friendly candidate. The conservative president Yoon Suk-yeol, later impeached, had made several crypto-friendly promises aimed at deregulating the sector, though many of those initiatives saw delays and limited progress during his three-year term.
Yoon’s deregulatory plans faced resistance from the Financial Services Commission (FSC), which maintained strict regulations citing investor protection. In recent months, however, the FSC has shown greater openness toward easing crypto rules — a shift that could support Lee’s commitments.
According to FSC data, by the end of last year the country had 9.7 million registered exchange users, representing nearly 20% of the total population.
