Cryptocurrency has emerged as a critical issue in South Korea’s SNAP presidential election, with candidates fighting for generations of digital asset investors seeking support from growth bases.
All three front runners deployed a code-friendly proposal. These include legalising the Spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) and relaxing banking rules currently restricting Fiat-to-Crpto trading on five platforms.
The June 3 vote is expected to come two years ago, triggered by former President Yukyoll’s bluff each after the controversial declaration of martial law in late 2024.
Yoon’s 2022 campaign was heavily leaning towards a promise to reform crypto regulations, primarily targeting younger voters. This time, the political focus on digital assets is strengthened as older generations begin to pour a considerable amount of wealth into digital assets.
The presidential election debate is a conflict over stubcoin
There are three main candidates in the election, all of whom are committed to moving forward the local crypto economy.
Democrat Lee Mun on the other side lost to Yun in the last election and returned with a second code-friendly campaign.
Kim Moon-Soo runs under the current ruling party, the People Power Party (PPP). Former President Yoon has distanced himself from the PPP ahead of the election, and Kim has made him define a new direction for the broken, conservative base.
Lee Jun Sok was once the youngest leader in PPP history. He is currently heading his own newly formed Reform Party. This is a minor party that was established in January 2024 after it split up with the ruling bloc.
“The political realm has been actively embracing (cryptocurrency) as a major campaign agenda,” Park Sung Joon, head of Dongguk University’s Blockchain Research Center, told Cointelegraph.
“The shift to the digital economy, the promotion of transparency in political funds, the spread of blockchain-based political participation technologies, and the growing demand for investor protection (cryptologies) have emerged as important economic, social and political issues in Korea.”
Both Lee Jae-Myung and Kim have pledged to relax strict banking rules requiring Crypto Exchange to partner with licensed banks to provide Fiat services. This structure excludes corporate participation as users must use their legal identity to open an account with a partner bank.
Lee also proposes launching a WON-fixed Stablecoin to reduce its dependence on tokens issued overseas.
Related: Korean Cryptographs Appear in Cookdown Season from Failed Coup
Lee Jun-Seok noted that South Korea once had Algorithmic Stablecoin, Terrakrw (KRT), a Terrakrw (KRT), a part of the Terra ecosystem that once suffered a multi-billion dollar collapse.
“Lee Jae Myung suggests launching another stubcoin without offering any safeguards. Do you back it up? How will the market risk be handled? How do you avoid repeating past obstacles?
The two candidates once again clashed with Stubcoin during a live debate in which Lee Jae Myung claimed the safety of centralized and Fiat-backed stubcoin.
Lee Jae Myung was Yoon’s opponent in the 2022 election and also defended the code-friendly policy. However, he was less aggressive than Yoon. Some of them were never implemented to lift the ban on playground (P2E) games or early coin offerings.
Lee Jun Chic is reportedly referred to as the “second semiconductor industry” in GAME Korea, which accounts for more than a fifth of the country’s total exports in 2024. He added that regulations dismissing blockchain-based P2E games will accelerate the departure of the creative industry.
P2E games remain banned under local regulations, but interest has skyrocketed among investors after the launch of a new title for Nexon, one of South Korea’s biggest game developers, and the launch of a new cryptocurrency related to the in-game economy.
Crypto promises to test the foundations of old and new voters
According to the Financial Information Unit (FIU), South Korea knew 9.7 million people by the end of 2024. Investors in their 30s increased by 29%, while investors in their 40s (27%) increased by 25%, but increased by 25%.
FIU’s findings show that older investors have larger holdings. By the end of the year, 221,000 investors had won at least 100 million wins (approximately $73,000) in crypto. Of these, 172,500 – or 78% – exceeded 40.
Related: XRP and Solana compete for next Crypto ETF approval
In February, the head of the Financial Industry Association urged regulators to approve Bitcoin and ether ETFs, citing an increase in demand for older investors. He argued that ETFs provide safer exposure than direct investments.
The approval of the Bitcoin ETF was an important campaign pledge for both Ee Jae Myung and Kim. The move follows a global momentum following the US, the world’s largest market and South Korea’s leading trading partner, giving it a green light to find Bitcoin ETFs in early 2024.
“Cryptocurrency plays a certain role in our society, but ultimately it’s one of the global trends. When the US took the lead, we followed in its footsteps. That’s a bit of a shame. We were able to lead ourselves.
However, the national capital market law is a barrier that does not recognize crypto as a qualified asset underlying the ETF. The Financial Services Commission (FSC) is considering legal routes to allow Bitcoin ETFs under a dedicated cryptographic committee.
Lee is ahead of the voter survey for the presidential election
Yoon’s failed coup accelerated the presidential election and brought new urgency to the unresolved issues in the local crypto industry.
“In the 2022 presidential election, cryptocurrencies were seen as speculative and unreliable. But by the 2025 election, it had emerged as a key policy issue, with key candidates promoting institutionalization and financial commercialization in response to the investment reality faced by young people.
Korea is one of the largest crypto markets in the world. In the first quarter of 2024, Koreans ranked as the most trade fiat currency against crypto, driven primarily by retail investors. Institutional players are waiting for bystanders as FSC prepares to launch pilot trading for professional investors.
Crypto policies were once seen as a campaign strategy that shaking young voters, but this year they are seen as economic and social issues affecting multiple generations. In this election, older generations are entering the digital field, accelerating the demand for regulated investment vehicles such as ETFs.
“Things have changed a lot. There are even questions and answers about virtual assets during the president’s discussion, and the related discussions seem to be much more aggressive. In the past, people have seen it with skepticism, but now it feels like the public is getting closer to a more neutral and making their own judgment,” Cho said.
According to a local media survey, Lee Jae-myung and Kim are two main candidates, and according to a survey conducted from May 23 to 25, Lee leads Kim with 44.9% to 35.9%. Lee Junsik is behind at 9.6%, but earned almost 3% from a preliminary survey conducted a week ago.
The 21st presidential election is scheduled to take place on June 3rd.
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