South Korea’s Crypto Industry Poised for Major Gains Regardless of Snap Election Outcome

South Korea’s cryptocurrency sector is on the cusp of significant advancements as the nation prepares for a snap presidential election on June 3. Both leading candidates have pledged pro-crypto policies, signaling a bright future for the country’s vibrant digital asset market.

With promises to legalize spot cryptocurrency exchange-traded funds (ETFs), ease stringent regulations, and introduce a South Korean won-backed stablecoin, the crypto industry stands to benefit regardless of who wins the presidency.

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Election Dynamics and Candidate Promises

The snap election follows the impeachment and removal of former President Yoon Suk-yeol in December 2024, prompted by his controversial attempt to declare martial law. Lee Jae-myung of the center-left Democratic Party currently leads the polls with 49% support, according to a Gallup Korea survey conducted on May 28, 2025.

His opponent, Kim Moon-soo of the conservative People Power Party, trails with 36% support. Both candidates have embraced pro-crypto platforms, a rare point of bipartisan agreement, aiming to capitalize on South Korea’s robust crypto market, where daily trading volumes often surpass those of major stock indexes.

Lee Jae-myung has proposed allowing the nation’s $884 billion national pension fund to invest in cryptocurrencies, a move that could significantly boost institutional adoption. He also advocates for a won-backed stablecoin to modernize South Korea’s financial system and curb capital outflows.

During a May 2025 policy discussion, Lee stated, “We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.

I will create a safe investment environment so young people can build assets and plan for the future.” Additionally, Lee aims to relax strict banking rules that mandate crypto exchanges partner with licensed banks to offer fiat services.

Kim Moon-soo, aligning with Lee on key crypto policies, supports the legalization of spot crypto ETFs and pledges to ease regulations to foster broader crypto adoption.

This convergence of views underscores the growing importance of digital assets in South Korea, where over 16 million users actively participate in the crypto market, as reported by local exchanges in early 2025.

Did You Know?
South Korea’s crypto market is so active that its daily trading volume frequently exceeds that of the nation’s major stock indexes, with over 16 million registered users on local exchanges as of early 2025.

Regulatory Context and Industry Impact

South Korea’s crypto market is one of the most active globally, driven by high retail participation. In July 2024, the government introduced stringent regulations, imposing strict requirements on exchanges, including potential life sentences for criminal violations.

On May 20, 2025, the Financial Services Commission finalized new measures, introducing guidelines for nonprofit crypto sales and stricter listing standards for exchanges.

These regulations aim to enhance investor protection but have sparked calls for clearer, more supportive policies. The Democratic Party’s establishment of a Digital Asset Committee in May 2025 reflects a proactive approach to fostering industry growth and developing comprehensive cryptocurrency policies.

Industry leaders are optimistic about the election’s outcome. Simon Seojoon Kim, CEO of Seoul-based Hashed Ventures, noted in a recent interview that the pro-crypto stance of both candidates ensures a “clear win” for the country’s crypto investors.

Recent data indicates that South Korea’s crypto trading volume reached $3.2 billion daily on major exchanges in May 2025, surpassing the KOSPI index’s average daily volume of $2.8 billion, highlighting the market’s significance.