South Korea’s newly elected president, Lee Jae-myung, is pushing a strong pro-cryptocurrency agenda.

He plans to lift the ban on spot cryptocurrency ETFs and introduce a stablecoin market tied to the Korean won to help reduce capital outflows.

His administration also aims to improve crypto regulations, focusing on stablecoin oversight, exchange transparency, and easing restrictions in designated blockchain development zones to boost innovation.

South Korea remains a major player in the global crypto market, with about 20% of its population involved in crypto exchanges.

Lee won the presidency on June 4, 2025, with 49.42% of the vote, defeating right-wing candidate Kim Moon-soo, who got 41.15%.

🔗 Source: The Block

🧠 Food for thought

1️⃣ South Korea’s crypto market has shown remarkable resilience across regulatory cycles

Despite multiple regulatory waves since 2017, South Korea has maintained its position as a crypto powerhouse, demonstrating unusual market persistence.

The country accounted for 30% of global cryptocurrency trading despite having less than 1% of the world’s population during the first boom in 2017-2018, establishing itself as the third-largest Bitcoin market globally 1.

Even after regulatory crackdowns that caused Bitcoin to drop over $1,000 in a single day in December 2017, the market rebounded, with adoption growing to approximately 18 million users today—more than a third of the population 2.

This persistence can be attributed to unique cultural factors, including widespread acceptance of digital goods, exceptional internet infrastructure, and the view of crypto as a path to social mobility for younger Koreans 13.

The “Kimchi Premium,” where cryptocurrencies traded at higher prices in Korea than on international exchanges, further illustrated the market’s distinctive characteristics and intense local demand 4.

Despite facing some of the strictest compliance measures globally, South Korea’s virtual asset market capitalization exceeded 100 trillion won in 2024, demonstrating remarkable staying power through multiple market cycles 5.

2️⃣ Political attitudes toward crypto have evolved from skepticism to bipartisan embrace

South Korean political discourse on cryptocurrency has undergone a complete transformation over eight years, reflecting broader shifts in how digital assets are viewed by governments worldwide.