Cryptocurrency has emerged as a defining situation in South Korea’s snap presidential election, with candidates vying for help from a rising base of digital asset buyers throughout generations.
All three front-runners have rolled out crypto-friendly proposals. These embrace the legalization of spot Bitcoin (BTC) exchange-traded funds (ETFs) and the easing of banking guidelines that at present limit fiat-to-crypto buying and selling to simply 5 platforms.
The June 3 vote is slated to return round two years early, triggered by the impeachment of former president Yoon Suk-yeol after his controversial declaration of martial legislation in late 2024. Although shortly overturned by lawmakers, the abrupt energy seize led to a political disaster and his eventual elimination from workplace.
Yoon’s 2022 marketing campaign leaned closely on guarantees to reform crypto rules — largely geared toward youthful voters. This time, the political deal with digital belongings has solely intensified, as older generations start to pour vital wealth into digital belongings.
Presidential election debate conflict on stablecoins
This election has three main candidates, and all of them have promised to advance the native crypto economic system.
Lee Jae-myung of the opposing Democratic Celebration misplaced to Yoon within the final election and returns with a second crypto-friendly marketing campaign.
Kim Moon-soo is working underneath the present ruling occasion, the Folks Energy Celebration (PPP). Former president Yoon has distanced himself from the PPP forward of the election, leaving Kim to outline a brand new path for the fractured conservative base.
Lee Jun-seok was as soon as the youngest-ever chief of the PPP. He’s now main his personal newly fashioned Reform Celebration, a minor occasion he based in January 2024 after splitting with the ruling bloc.
“The political sphere has actively embraced [cryptocurrencies] as a key marketing campaign agenda,” Park Sung-jun, head of the Blockchain Analysis Middle at Dongguk College, instructed Cointelegraph.
“Pushed by the transition to a digital economic system, the push for transparency in political funding, the unfold of blockchain-based political participation applied sciences and rising calls for for investor safety, [crypto] has emerged as a big financial, social and political situation in South Korea.”
Lee Jae-myung and Kim have each pledged to ease strict banking guidelines that require crypto exchanges to associate with licensed banks to supply fiat providers — a system that has created a near-monopoly of simply 5 authorized platforms. The construction in place excludes company participation, because it requires customers to open accounts at associate banks utilizing their authorized identities.
Lee has additionally proposed launching a stablecoin pegged to the received to cut back reliance on tokens issued overseas.
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Lee Jun-seok pushed again, noting that South Korea as soon as had a won-pegged algorithmic stablecoin, TerraKRW (KRT), a part of the Terra ecosystem that suffered a multibillion-dollar collapse.
“Lee Jae-myung proposes launching one other stablecoin with out presenting any safeguards. What belongings will again it? How will market dangers be dealt with? How will we keep away from repeating previous failures? There are not any solutions,” Lee Jun-seok mentioned in a Fb put up, criticizing his opponent for turning stablecoins right into a “slogan.”
The 2 candidates clashed once more on stablecoins throughout a reside debate, the place Lee Jae-myung argued for the security of centralized and fiat-backed stablecoins.
Lee Jae-myung was Yoon’s opponent within the 2022 election when he additionally championed crypto-friendly insurance policies. Nevertheless, he was much less aggressive than Yoon, who made a number of pro-crypto pledges. A few of them, like lifting bans on play-to-earn (P2E) gaming and preliminary coin choices, have been by no means carried out.
Lee Jun-seok reportedly known as gaming South Korea’s “second semiconductor business,” which made up greater than a fifth of the nation’s complete exports in 2024. He pledged to focus on 10% of the worldwide gaming market by regulatory help in taxation, exports and expertise growth. He added that rules that dismiss blockchain-based P2E video games speed up the exodus of inventive industries.
P2E video games stay banned underneath native rules, however curiosity has not too long ago surged amongst buyers following the launch of a brand new title by Nexon, one in every of South Korea’s greatest sport builders, together with a brand new cryptocurrency tied to its in-game economic system.
Crypto guarantees take a look at previous and new voter bases
South Korea had 9.7 million Know Your Buyer-verified crypto buyers by the tip of 2024, a 25% improve from the primary half of the 12 months, in line with the Monetary Intelligence Unit (FIU). Buyers of their 30s noticed the largest progress, up 29%, adopted by these of their 40s (27%), whereas buyers over 50 elevated by 25%.
The FIU’s findings present that older buyers have bigger holdings. By year-end, 221,000 buyers held at the least 100 million received (about $73,000) in crypto. Of these, 172,500 — or 78% — have been over 40.
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In February, the top of the monetary business affiliation urged regulators to approve Bitcoin and Ether ETFs, citing rising demand amongst older buyers. He argued that ETFs provide safer publicity than direct funding.
The approval of Bitcoin ETFs has been a key marketing campaign pledge for each Lee Jae-myung and Kim. The transfer follows rising international momentum after the US, the world’s largest market and a key South Korean buying and selling associate, gave the inexperienced gentle to identify Bitcoin ETFs in early 2024.
“Cryptocurrencies play a sure function in our society, however they’re in the end one of many international developments. Because the US took the lead, we’ve ended up following in its footsteps. It’s a bit disappointing — we may have taken the lead ourselves,” Cho Jaewoo, assistant professor of social science at Hansung College, instructed Cointelegraph.
Nevertheless, the nation’s Capital Markets Act is a barrier that doesn’t acknowledge crypto as eligible belongings underlying ETFs. The Monetary Providers Fee (FSC) can also be reviewing authorized pathways to permit Bitcoin ETFs underneath its devoted crypto committee.
Lee forward in presidential election voter survey
Yoon’s failed coup accelerated the presidential election and introduced renewed urgency to unresolved points within the native crypto business.
“Within the 2022 presidential election, cryptocurrency was considered as speculative and untrustworthy. However by the 2025 election, it had emerged as a key coverage situation, with main candidates pushing for institutionalization and monetary productization in response to the funding realities confronted by younger folks,” Park from Blockchain Analysis Middle mentioned.
South Korea is among the world’s largest crypto markets. In Q1 2024, the Korean received ranked because the most-traded fiat forex in opposition to crypto, pushed largely by retail buyers. Institutional gamers stay on the sidelines, awaiting their flip because the FSC prepares to launch pilot buying and selling for skilled buyers.
Crypto insurance policies have been as soon as seen as marketing campaign methods to sway youthful voters, however this 12 months, they’re seen as an financial and social situation that impacts a number of generations. On this election, older generations are coming into the digital sphere, accelerating requires regulated funding autos, reminiscent of ETFs.
“Issues have modified lots. There have been even questions and solutions about digital belongings throughout the presidential debates, and associated discussions appear to be way more lively. Up to now, folks checked out it with skepticism, however now it appears like the general public is approaching it extra neutrally and making their very own judgments,” Cho mentioned.
Lee Jae-myung and Kim are the 2 main candidates, in line with native media surveys, with Lee main Kim at 44.9% to 35.9%, in line with a survey carried out from Could 23 to 25. Lee Jun-seok is much behind at 9.6%, although he gained virtually 3% from the preliminary survey carried out per week prior.
The twenty first presidential election is scheduled to happen on June 3.
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