Isabella García
Support for spot crypto ETFs is quickly becoming a rare point of political unity in South Korea’s heated 2025 presidential race. On Monday, Kim Moon-soo, the conservative candidate from the People Power Party, officially announced that he would endorse the introduction of spot crypto exchange-traded funds if elected.
According to the National Election Commission, Kim’s campaign is focused on boosting middle-class wealth and sees regulated cryptocurrency ETFs as a tool to help achieve this. He also committed to introducing comprehensive legislation to strengthen transparency and fairness in South Korea’s crypto market.
Kim’s stance brings both of South Korea’s major political forces into alignment on the crypto ETF issue. Last week, Lee Jae-myung of the Democratic Party of Korea — the leading progressive candidate — also pledged to introduce spot crypto ETFs, positioning the move as a way to offer new financial opportunities to the younger generation.
Together, the People Power Party and the Democratic Party of Korea control 277 of 300 seats in the country’s National Assembly, making bipartisan agreement particularly influential.
Current Regulations and Political Shifts
Despite growing political support, South Korea’s Financial Services Commission (FSC) still maintains that there is no current legal foundation to approve spot crypto ETF listings. However, recent developments in the U.S. market may be influencing local sentiment.
After U.S. spot bitcoin and ether ETFs recorded over $43 billion in net inflows, the FSC has stated it is open to reexamining its stance. Chairman Kim Byung-hwan of the FSC noted that the regulator is in agreement with the current candidates’ pledges and will discuss practical steps with the next administration.
Impeachment Fallout and Upcoming Election
This unexpected policy alignment comes amid political turbulence. South Korea is holding an early presidential election on June 3, 2025, following the impeachment of former President Yoon Suk-yeol, who was removed last month after attempting a brief declaration of martial law.
Polls currently show Lee Jae-myung leading with 54% support according to Flower Research, while Kim Moon-soo trails with 20.6%. A second poll by Realmeter reflected similar trends, placing Lee at 52% and Kim at 31%.
South Korea Eyes U.S. Success as Model for ETF Adoption
As the U.S. continues to expand its crypto ETF market, with filings for Solana and XRP-based ETFs now under review, South Korea may be preparing to follow suit. The convergence of political will, public support, and global market trends suggests that crypto ETFs could soon become a reality in Asia’s fourth-largest economy.
