South Korea’s Top Presidential Candidate Pledges to Legalize Crypto ETFs if Elected Next Month

Highlights:

• Lee promises to approve crypto ETFs and improve investment safety for youth.
• FSC chairman supports spot crypto ETFs and plans discussions with the new administration.
• South Korea’s 16 million crypto investors could impact the presidential election outcome.

South Korean politician Lee Jae-myung has promised to approve spot crypto exchange-traded funds (ETFs) and establish a safer investment environment for young investors if he becomes president. ‘”I will introduce spot virtual asset ETFs and establish an integrated monitoring system to create a safe virtual asset investment environment,” he wrote in a May 6 Facebook post. 

Lee, running for the Democratic Party of Korea, also pledged a new interest-bearing savings program and a financial planning initiative for young South Koreans. In addition to these measures, Lee promised to work on lowering trading fees and revising existing regulations.

Lee said the problems young people face are not just personal but part of a bigger issue in society. He promised to create more opportunities for young people to work, grow their wealth, and live worry-free. Lee is currently ahead in the race with an approval rating of about 50%. Polymarket’s $80 million bet shows an 87% chance of his victory. 

FSC Chairman Expresses Support for Spot Cryptocurrency ETFs

Currently, South Korea’s Financial Services Commission (FSC) does not allow the local issuance or trading of spot crypto ETFs. The FSC concluded last year that there is no legal basis for using Bitcoin or other cryptocurrencies as assets for such products. In a meeting on Wednesday, FSC Chairman Kim Byung-hwan said the agency supports the election promises related to spot crypto ETFs. He mentioned that they would discuss how to implement these changes with the incoming administration, as reported by MoneyToday.

Kim Moon-soo, Lee’s opponent from the conservative People Power Party, also made a promise to remove the current de facto ban on crypto exchange-traded funds.

JUST IN: 🇰🇷 South Korea’s second largest party vows to approve spot #Bitcoin ETFs within a year.

Asia is getting prepared 🙌 pic.twitter.com/TNEqRVfFlr

— Bitcoin Magazine (@BitcoinMagazine) April 29, 2025

Crypto Investors Set to Impact South Korea’s Presidential Election

Crypto trading in South Korea has surged, surpassing the activity in the stock market. Digital assets have reached a market value of over 100 trillion won ($74.8 billion). Global political changes, like Donald Trump’s election as US President, have also contributed to a fivefold increase in trading volume.

South Korea has delayed the 20% capital gains tax on crypto until 2027 because of enforcement issues. The government is also cracking down on market manipulation by requiring crypto companies to follow stricter rules under the Virtual Asset User Protection Act (VAUPA). Despite strict regulations, South Korea is still one of the most active crypto markets. Altcoins like XRP are popular, as the country prefers fast and cost-effective transactions.

The upcoming presidential election in South Korea on June 3rd is expected to be heavily influenced by the country’s 16 million crypto investors. These investors, who make up about 36% of voters, are likely to impact the election outcome. The size of the crypto market in South Korea is now comparable to the KOSPI’s market capitalization, showing its economic importance.