South Korea’s newly inaugurated president, Lee Jae-myung, has taken office with a bold agenda to integrate digital assets into the nation’s financial and regulatory systems, positioning the country as a global leader in cryptocurrency innovation.
Rising from a child laborer in post-war South Korea to a human rights lawyer and now president, Lee’s journey resonates with the working class. His administration, backed by the Democratic Party’s Digital Asset Committee, is poised to enact transformative policies, including the Digital Asset Basic Act (DABA), spot crypto exchange-traded funds (ETFs), and a won-based stablecoin.
However, ongoing legal battles and allegations of corruption threaten to overshadow his ambitious plans, raising questions about his ability to deliver on campaign promises.
A Crypto-Friendly Vision for South Korea
Lee’s presidency comes at a pivotal moment for South Korea, one of the world’s largest crypto markets, with trading volumes consistently ranking among the top globally.
His campaign emphasized integrating digital assets into mainstream finance, building on groundwork laid by his predecessor, Yoon Suk Yeol, who was impeached in 2024.
The Democratic Party’s Digital Asset Committee, led by lawmaker Min Byoung-dug, is spearheading efforts to pass DABA, which would establish a self-regulatory body for crypto, introduce a stablecoin approval system, and clarify rules for service providers.
Lee also supports allowing the National Pension Service, one of the world’s largest pension funds, to invest in digital assets, a move that could bring institutional credibility to the sector.
A key differentiator in Lee’s platform is his proposal for a centralized, fiat-backed won-based stablecoin, designed to avoid the pitfalls of the infamous Terra collapse in 2022, which wiped out billions in investor wealth.
Min has suggested leveraging South Korea’s cultural exports, such as K-pop and K-dramas, to promote this stablecoin in Southeast Asia, tapping into the global influence of K-culture.
Additionally, Lee aims to revise the restrictive “one exchange, one bank” rule, which has created a monopolistic environment for domestic crypto exchanges, potentially fostering greater competition and innovation.
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Legal Shadows Over Lee’s Presidency
Despite his reformist vision, Lee’s presidency is clouded by multiple legal challenges. He faces five ongoing cases, including allegations of election law violations, corruption, misuse of public funds, illegal money transfers to North Korea, and subornation of perjury.
The most immediate hurdle is a retrial for violating the Public Official Election Act, with a hearing scheduled for June 18, 2025. Legal experts are divided on whether presidential immunity under Article 84 of the Constitution applies to pre-existing trials, a question that could set a historic precedent.
Lee’s polarizing rhetoric, while resonating with disaffected voters, has drawn criticism for fueling division. His legal troubles stem from accusations of colluding with developers and misusing funds during his tenure as Seongnam mayor and Gyeonggi Province governor.
The most serious allegation involves claims of illegal payments to North Korea, a charge that carries significant geopolitical weight given Pyongyang’s history of crypto-related cyberattacks, including a $1.4 billion hack on the Bybit exchange in February 2025, as reported by blockchain analytics firms.
Balancing Crypto Innovation and Diplomacy
Lee’s foreign policy, particularly his approach to North Korea, will also shape his presidency. Unlike Yoon’s hardline stance, Lee advocates for dialogue and peace talks with Pyongyang, a strategy that has sparked both optimism and skepticism. North Korea’s state-sponsored hackers remain a global concern, with reports linking them to sophisticated crypto heists to fund weapons programs.
Lee’s push for “balanced diplomacy” aims to strengthen ties with the United States and Japan while improving relations with China, a shift from Yoon’s policies, which strained Beijing-Seoul relations.
Chinese President Xi Jinping’s recent pledge to enhance bilateral ties signals potential for warmer relations, though some analysts warn of risks to South Korea’s Western alliances.
Did You Know?
South Korea’s crypto trading volume in 2024 surpassed $1 trillion, making it one of the top three retail crypto markets globally, alongside the United States and India.
A Test of Leadership Amid Instability
Lee’s inauguration on June 4, 2025, followed a tumultuous period marked by Yoon’s controversial martial law declaration and impeachment, the second such event in South Korea in less than a decade.
Lee has vowed to restore democratic stability, proposing constitutional amendments to allow presidents two four-year terms and to separate investigative and prosecutorial powers.
These reforms aim to prevent future abuses of power, but their success hinges on Lee navigating his legal and political challenges.
The crypto industry in South Korea perceives Lee's presidency as a pivotal moment, as policies such as spot ETFs and pension fund investments indicate a shift towards institutional adoption.
While these initiatives enjoy bipartisan support, their implementation will test Lee’s ability to unify a polarized nation and deliver on his vision of a “basic society” rooted in economic fairness and technological progress.
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