South Korea has elected Lee Jae-myung as its new president, triggering a wave of optimism in the country’s crypto industry.
Lee, a center-left politician from the Democratic Party, secured 49.31% of the vote in Tuesday’s election, defeating his conservative rival Kim Moon-soo.
Lee Jae-myung’s Election Ushers in New Era for Crypto Policy in South Korea
Voter turnout hit 79.4%, the highest in 28 years, marking a powerful public rebuke of the previous administration. More importantly, however, it marks a pivotal moment for digital asset policy in one of Asia’s most active crypto markets.
Lee’s campaign promises have investors and builders on edge. He has publicly committed to allowing South Korea’s $884 billion national pension fund to invest in Bitcoin and other cryptocurrencies.
He has also vowed to greenlight spot Bitcoin ETFs (exchange-traded funds) and develop a Korean won-pegged stablecoin to reduce capital flight and increase domestic adoption.
“South Korea’s $884 billion national pension fund will be allowed to invest in Bitcoin. Extremely bullish for Bitcoin,” wrote Mister Crypto on X.
South Korea’s crypto community has long advocated clearer regulations and greater access to institutional-grade investment vehicles.
With over 18 million crypto users, the country has historically been a bellwether for retail enthusiasm and technological innovation. However, legal uncertainty and capital controls have kept much of its crypto economy limbo. Lee’s victory may change that.
“To promote youth asset-building and advance crypto institutionalization, President Lee has pledged to introduce spot crypto ETFs, issue a won-based stablecoin, and establish an integrated market surveillance system,” Blockmedia, a local media outlet in South Korea, reported.
These reforms are intended to enhance transparency, improve investor protection, and support youth asset-building amid economic stagnation.
Still, significant legal hurdles remain. Under current law, crypto assets in South Korea are not classified as financial instruments. This status blocks ETF approvals and limits institutional participation.
Experts say Lee’s success depends on securing legal clarity and realigning the government’s stance on digital assets.
Bitcoin ETF, National Pension Investment, and KRW Stablecoin Take Center Stage
Crypto was a rare bipartisan issue in the election. Both major candidates backed pro-crypto policies, signaling a growing recognition that blockchain and digital assets are central to South Korea’s innovation economy.
Beyond ETFs, stablecoins are emerging as a strategic focus. At a recent seminar hosted by Hashed and Four Pillars, builders, banks, and regulators discussed the future of KRW-denominated stablecoins.
Alex Lim of LayerZero said the event captured a new spirit in Korea’s crypto space.
“Less noise, more authenticity… More conviction in building real, tangible utility,” Lim wrote in a post.
Lim emphasized that Korea’s distribution power, across fintech, IP, content, and commerce, makes it a natural hub for real-world stablecoin use cases.
“The first wave of stablecoin innovation here won’t be about volumes or yield. It’ll be about real-world adoption,” he added.
South Korea appears to be leaning toward bank-led issuance models, but the sentiment is that broader participation from fintechs and capital markets will be essential.
Notwithstanding, Lee’s path forward may not be easy. He inherits a deeply divided country, including a fractured opposition and a trial over election law violations postponed until after the vote.
“I will do my utmost to fulfil the great responsibility and mission entrusted to me,” BBC reported, citing Lee’s statement to reporters.
With crypto now squarely on the national agenda, the stakes for South Korea’s digital asset future have never been higher.
The post New South Korean President Sparks Hope for Bitcoin ETFs and KRW Stablecoin appeared first on BeInCrypto.
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