In the South Korean presidential race, the frontrunner Lee Jae-myung has pledged to allow spot cryptocurrency exchange-traded funds (ETFs) nationwide.
Lee stated that this initiative aims to create new investment opportunities, especially for the younger generation. Currently, the issuance or trading of spot cryptocurrency ETFs is not legally feasible in South Korea, but lifting this ban has become a central topic in the election campaign.
Lee’s New Cryptocurrency Pledges to the Youth
Lee Jae-myung, the left-leaning candidate of the Democratic Party, announced on social media that he would approve spot cryptocurrency ETFs upon taking office. In addition, he outlined plans to establish a comprehensive cryptocurrency regulatory framework. According to Lee, these measures would not only make the investment environment safer but also contribute to the financial independence of the youth.
Emphasizing that the economic challenges facing young people are a structural crisis rather than an individual one, Lee stated, “We will create a system where the youth can not only work but also save and feel secure.” Other promises include a new savings program with interest benefits and specialized financial planning services for the youth. These proposals, directly tied to the cryptocurrency market, have received a positive response, particularly from tech-savvy young voters.
Cryptocurrency ETFs Take Center Stage in the Election Race
The Financial Services Commission (FSC), South Korea’s current regulatory authority, had previously ruled against allowing spot cryptocurrency ETFs, citing a lack of legal basis. However, recent developments suggest that this stance might change. In a pre-election statement, FSC Chairman Kim Byung-hwan indicated that discussions would be held with the new government regarding the legalization of spot cryptocurrency ETFs following the election promises.
Kim Moon-soo, the right-leaning candidate from the People’s Power Party, also advocates for lifting the ban on spot cryptocurrency ETFs. This stance suggests that the elections could become a pivotal moment in South Korea, not only politically but also economically and technologically, for cryptocurrency investors.
According to the prediction market platform Polymarket, Lee’s chances of winning the elections have risen to as high as 87%. In public opinion polls, his support hovers around 50%.
