Crypto ETF Policy Becomes Deciding Issue in South Korea’s Presidential Election

Key Takeaways

• South Korea’s leading presidential candidate has pledged to lift the country’s ban on crypto ETFs.
• The ruling party came to power with similar promises but failed to follow through.
• From Seoul to Washington, crypto is becoming a defining issue in global elections.

South Korea’s upcoming presidential election is shaping up to be a referendum on crypto policy, with leading candidates doubling down on promises to legalize crypto investment products, particularly Bitcoin (BTC) exchange-traded funds (ETFs).

Currently, crypto ETFs are banned in South Korea, despite earlier pledges from the ruling party to lift the restriction.

That broken promise is now front and center, as opposition candidates hope to win over the country’s fast-growing community of crypto investors.

Lee Jae-Myung Pledges To End ETF Ban

Lee Jae-Myung, leader of the Democratic Party and the current front-runner, says he’ll legalize spot crypto ETFs if elected.

In a Facebook post on Wednesday, Lee vowed to create a safe digital asset investment environment by introducing spot ETFs and launching an integrated crypto monitoring system.

“They are a structural crisis created by a lack of opportunities across society as a whole,” Lee wrote, referencing young voters’ economic pressures. “I will create opportunities so young people can work freely, grow their assets, and live without worry.”

With an approval rating hovering around 50%, Lee is widely expected to win. Prediction markets on Polymarket give him an 87% chance of victory.

South Korea is holding a snap election this June following the impeachment of President Yoon Suk-yeol last month.

Yoon, of the conservative People Power Party, had campaigned in 2022 on a pro-crypto platform but failed to deliver major reforms during his presidency.

A Global Trend: Crypto Becomes a Political Flashpoint

South Korea’s crypto-focused election mirrors a global trend.

In the U.S., crypto has become a key issue in the 2024 general election, with digital asset donations surpassing traditional campaign contributions for the first time.

Argentina, too, has seen presidential candidates campaigning on Bitcoin adoption amid runaway inflation.

In South Korea, however, policy has lagged behind political rhetoric.

Despite its technologically advanced economy, the country has one of the strictest regulatory environments for crypto investors.

The current ETF ban has remained firmly in place, and even limited proposals, such as granting institutional access to foreign-listed crypto ETFs, have stalled.

The conservative People Power Party, now struggling to retain control, rose to power in 2022 on a platform that included lifting the ETF ban, reforming the controversial one-exchange-one-bank rule, and introducing stablecoin regulations.

Yet none of those promises materialized before Yoon’s impeachment, reportedly triggered by his declaration of martial law.

Now, with the election approaching, crypto voters may finally see the policy follow-through they were promised, if Lee’s campaign delivers where others fell short.