South Korean politician Lee Jae-myung has announced plans to approve spot cryptocurrency exchange-traded funds (ETFs) and improve the investment landscape for young investors if elected president. As the Democratic Party’s presidential candidate, Lee has introduced a series of crypto-friendly policies aimed at appealing to younger voters ahead of the June 3 election.

Lee Jae-myung’s Vision for Digital Assets

In a social media post on May 6, Lee emphasized his commitment to helping young people “[build] assets and plan for the future” by making cryptocurrency investments safer and more accessible. His proposals include pushing for the legalization of spot crypto ETFs and establishing a unified oversight system to enhance investor protections and bring greater transparency to the market.

Additionally, Lee has pledged to reduce trading fees and reform existing regulations to make cryptocurrency a more stable and mainstream investment option for everyday users. These measures are part of a broader strategy to address the financial challenges faced by younger South Koreans, many of whom have been priced out of traditional investment opportunities such as real estate and stocks.

Crypto as a Key Voting Issue

Lee’s focus on digital assets reflects the growing importance of cryptocurrency in South Korea’s political landscape. With approximately 16 million crypto users—accounting for roughly 36% of the electorate—digital asset investors have become a significant voting bloc. Politicians across party lines are increasingly tailoring their policies to court these voters.

The Democratic Party has enlisted Professor Kim Yong-jin, a token securities expert, to help shape its crypto-related policies. One of its lawmakers has also introduced draft legislation called the Digital Asset Promotion Basic Act, signaling a strong commitment to the sector.

Competing Crypto Agendas

The ruling People Power Party has also unveiled its own ambitious plan to support the cryptocurrency industry. The party’s strategy includes approving spot Bitcoin ETFs this year, eliminating South Korea’s one-exchange-one-bank rule, enabling institutional crypto trading, and developing a stablecoin regulatory framework aligned with global standards.

Representative Park Soo-min of the People Power Party has emphasized the urgency of approving ETFs, noting that jurisdictions like Hong Kong and the U.S. are moving ahead in this area. The party has also proposed establishing a special crypto committee under its presidential candidate, Kim Moon-soo, to address the lack of investor protections for the millions of South Koreans involved in digital assets.

Key Takeaways for Investors

For South Korean voters interested in cryptocurrency and finance, the upcoming presidential election is shaping up to be pivotal. Here are some key points to consider:

  • Both major political parties are actively pursuing crypto-friendly policies, recognizing the sector’s importance to young and tech-savvy voters.
  • Spot ETFs, reduced trading fees, and regulatory reforms are central to the proposed changes, which aim to make cryptocurrency investing safer and more accessible.
  • The election could mark a turning point for cryptocurrency adoption in South Korea, with significant implications for investors.

As the June 3 election approaches, South Korean voters will have the opportunity to weigh each candidate’s stance on digital assets and decide which path aligns best with their financial goals.

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