Daniel Walker
South Korea has ushered in a new era of leadership, officially naming left-leaning candidate Lee Jae-myung as its next president on Wednesday. His election follows the impeachment of former leader Yoon Suk-yeol, whose controversial military-style governance sparked widespread public dissatisfaction.
Tuesdayโs election saw voter turnout reach 79.4%, the highest participation rate in nearly three decades. Lee secured victory with 49.42% of the vote, defeating right-wing challenger Kim Moon-soo, who garnered 41.15%.
Crypto Industry Set to Benefit Under New Administration
President Lee has made it clear that revitalizing South Koreaโs economy will be his top priority, with a particular focus on supporting low-income households and small businesses. However, his forward-looking vision also includes a robust strategy for boosting the local cryptocurrency ecosystem.
Among his key proposals:
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Legalizing spot crypto ETFs in South Korea, a move inspired by the success of similar products in the United States.
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Launching stablecoins tied to the Korean won, with the goal of keeping capital within domestic borders.
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Accelerating the second phase of South Koreaโs digital asset regulation, which will prioritize transparency among crypto exchanges and establish clear stablecoin guidelines.
Creating Blockchain Innovation Hubs
Lee also plans to designate special blockchain innovation zones, where crypto and Web3 firms will face fewer regulatory hurdles, allowing for faster experimentation and adoption of emerging technologies.
Learning From Past Leadership
This isn’t the first time a South Korean president has campaigned on a pro-crypto platform. Former president Yoon also promised to deregulate the digital asset space, but saw little progress due to internal pushbackโparticularly from the Financial Services Commission (FSC).
That said, the FSCโs recent shift toward a more open stance on crypto regulation may now play in Leeโs favor, potentially paving the way for real change in the countryโs crypto policy.
A Crypto-Powered Nation on the Rise
South Korea is already home to one of the largest cryptocurrency markets in the world, known for its active altcoin trading community. As of late 2024, over 9.7 million peopleโnearly 20% of the national populationโwere registered on crypto exchanges, according to FSC data.
