South Korea Presidential Front-Runner Pledges Spot Crypto ETF Legalization

Democratic Party leader Lee Jae-myung has placed crypto policy at the center of his campaign amid South Korea’s June 3 presidential election. He pledged to legalize spot ETFs, lower transaction fees, and introduce robust consumer protections. 

His remarks, made public on May 6, mark the first time the frontrunner has explicitly addressed crypto during his presidential bid.

Lee’s campaign is now tapping into the growing frustration and aspirations of younger Koreans, a demographic increasingly drawn to digital assets in a country where traditional avenues for wealth accumulation, such as real estate, have become less accessible.

“I will create a safe investment environment so that young people can [build] assets and plan for the future,” Lee said, according to The Korea Economic Daily, signaling his intent to foster a more welcoming and regulated crypto landscape.

Momentum Grows as Both Major Parties Warm to Crypto

Lee’s Democratic Party isn’t alone in recognizing crypto’s growing political weight. The ruling People Power Party has also outlined crypto-friendly reforms, including a pledge to dismantle the controversial one-exchange-one-bank rule — a regulation limiting each crypto exchange to partnering with only one domestic bank.

The rule was intended to mitigate money laundering but has been criticized for stifling innovation and competition.

Both parties now support the approval of spot crypto ETFs — a sharp contrast to previous administrations that took a more cautious approach. The Democratic Party, despite making similar promises during the general election earlier this year, struggled to push legislation through. 

But with Lee polling at 42% — well ahead of acting president Han Duck-soo’s 13% — the renewed commitment is seen by industry observers as more than just campaign rhetoric.

A Post-Impeachment Climate

South Korea’s crypto narrative is also unfolding in the wake of political turbulence. Former president Yoon Suk Yeol, ousted in April after imposing martial law in December, sparked temporary panic across crypto markets. Bitcoin and Ether briefly tumbled before bouncing back once the order was lifted just six hours later.

Lee’s positioning contrasts sharply with that of his predecessor, signaling a more stable, forward-looking regulatory approach.

With over 16 million South Koreans — nearly one-third of the population — holding crypto accounts, the message is clear: digital assets have become a mainstream electoral issue.