South Korea’s new president will bolster crypto, but scandals prevail

2025-06-06 08:36:02 Primitive Reading

President Lee Jae-myung’s rise to South Korea’s highest office marks the return of a left-leaning populist with deep working-class roots and bold plans for institutional crypto integration.

Though crypto was not directly mentioned in Lee’s inauguration speech on June 4 after the impeachment of his predecessor, Yoon Suk Yeol, Lee now leads the country with a list of crypto promises made during his campaign.

His administration is expected to accelerate the integration of digital assets into Korea’s regulatory and financial systems on the back of the Democratic Party’s Digital Asset Committee.

Lee’s rise from a teenage factory worker to a human rights lawyer has shaped his reputation as a reformist. After narrowly losing the 2022 election, in which he campaigned on universal basic income, he returned with revised promises focused on a “basic society,” advocating shorter work weeks and targeted basic income.

Despite his victory, Lee begins his term under the shadow of ongoing controversies, including real estate scandals, alleged illegal funding to North Korea and a 2024 stabbing he survived.

Lee’s rags-to-riches tale brings him to the helm of one of the world’s largest crypto economies. Source: Democratic Party

President Lee backs crypto for big money

Lee is expected to oversee major crypto policy changes in South Korea, including the likely enactment of the Digital Asset Basic Act (DABA). The progress began under Yoon, who campaigned on it but couldn’t see it to fruition due to his premature dismissal.

Recently, the Democratic Party formed a Digital Asset Committee led by lawmaker Min Byoung-dug, who is aiming to pass DABA through the National Assembly this year. Min said in a recent local media interview that the bill will propose a legally recognized self-regulatory body, a stablecoin approval system and clearer rules for crypto service providers.

Lee also championed approving spot crypto exchange-traded funds (ETFs), which are currently banned under existing law, and allowing the National Pension Service to invest in digital assets.

Regulatory discussions on crypto ETFs were already heating up before the election, and the Financial Services Commission has launched a phased strategy to bring institutional investors into crypto. His main election rival, Kim Moon-soo, backed the same initiatives.

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