South Korea has officially declared Lee Jae-myung, the candidate from the left-leaning party, as its new president on Wednesday. The appointment followed the impeachment of former president Yoon Suk-yeol, who faced intense public backlash after three years of failed military-led governance.
Tuesday witnessed a remarkable voter turnout of 79.4% across the nation, marking the highest participation in nearly three decades. Lee secured 49.42% of the total votes, outperforming his right-wing rival Kim Moon-soo, who garnered 41.15%.
Lee promised to address the nation’s pressing economic issues by offering greater assistance to small business owners and low-income households. Additionally, he committed to laying a more robust groundwork for the domestic cryptocurrency sector.
Lee’s commitment to the crypto sector features support for introducing spot cryptocurrency exchange-traded funds (ETFs) within South Korea. The nation’s financial regulators have been exploring this possibility following the popularity of similar ETFs in the U.S. Currently, both the issuance and trading of crypto ETFs remain prohibited under domestic regulations.
Another significant initiative being promoted is the authorization of stablecoins linked to the Korean won. In a recent conversation, Lee emphasized that creating a domestic market for won-denominated stablecoins is essential to curb the outward movement of local financial resources.
During his tenure, the completion of the second phase of South Korea’s dual-part digital asset regulation framework is expected to be prioritized. The forthcoming legislation will primarily concentrate on establishing clear rules for stablecoins and enforcing transparency standards for cryptocurrency exchanges.
Additional crypto-related commitments involve easing restrictions within zones earmarked as special blockchain development areas, aiming to boost both innovation and operational efficiency.
Another Attempt in a Familiar Pattern
This isn’t South Korea’s first instance of electing a leader with pro-crypto pledges. The impeached conservative president, Yoon, had introduced multiple commitments favoring crypto deregulation. However, delays were experienced and limited advancements were observed throughout his three-year presidency.
Yoon’s intentions to relax restrictions on the crypto sector encountered pushback from the Financial Services Commission, which maintained firm regulations in the name of investor protection. However, the FSC has recently shown greater openness to loosening its stance on crypto rules—an adjustment that may support Lee’s blockchain-focused agenda.
One of the largest global hubs for cryptocurrency trading, South Korea is notably centered around altcoin markets. By the close of the previous year, nearly 9.7 million individuals were using crypto exchanges in the country—accounting for close to 20% of its entire population, based on data released by the Financial Services Commission (FSC).
