South Korea, this thriving crypto market, has chosen a president Lee Jae-myung who will promote the Korean won stablecoin and crypto ETF.
As a core member of the Democratic Party, Lee Jae-myung narrowly lost the 2022 presidential election to Yoon Suk-yeol. At the time, he made cryptocurrency policy a key campaign promise, trying to attract young people and retail investors. However, two consecutive election defeats once labeled him as the "eternal candidate".
Until that day. In December 2024, the Korean political landscape suddenly changed. President Yoon Suk-yeol was quickly impeached under public opinion and parliamentary pressure for attempting to impose martial law, causing a constitutional crisis. This crisis not only vacated the presidential seat two years early but also broke the existing power balance, unexpectedly creating an opportunity for Lee Jae-myung, a politician who had repeatedly fought despite defeats.
As the power structure collapsed and parliament fell into turmoil, Lee Jae-myung quickly seized the opportunity. He summoned lawmakers to the National Assembly hall, initiated a live broadcast, and climbed over the wall with the support of the people.
From that day, Lee Jae-myung became the more suitable presidential candidate in the hearts of Koreans. "I must quickly let as many citizens as possible understand this situation," he urged in his live broadcast, calling on people to witness the parliamentary process of overturning martial law.
Finally, in the presidential by-election announced last night, Lee Jae-myung led with 49.2% of the votes, ahead of his opponent Kim Moon-soo (36.8%), successfully elected as the 21st President of South Korea. For his supporters, this was a victory of "winning at all costs", a validation after three attempts.
For the Korean crypto industry, Lee Jae-myung's victory may have even more far-reaching significance: he is not only a political winner but also one of the most steadfast advocates of crypto policy. His election marks a fundamental institutional shift in digital asset regulation in South Korea.
(Translation continues in the same manner for the rest of the text)In 2025, the Korean cryptocurrency market is experiencing explosive growth, with total market capitalization exceeding 1 trillion Korean won, even surpassing the country's stock market trading volume at one point. This growth is stimulated by expectations of domestic policy relaxation and is related to the global political and economic situation. Especially against the backdrop of Trump's re-election as US president triggering risk-averse sentiment towards US dollar assets, local Korean investors have massively flowed into the virtual asset market priced in Korean won, forming a regional capital backflow trend.
Facing the market's activity, regulation is gradually catching up. The government has announced postponing the virtual asset transfer income tax originally scheduled for 2025 to 2027, citing reasons such as "immature technical implementation" and "incomplete investor protection system". This move effectively calmed market sentiment and bought buffer time for Lee Jae-myung's new regulatory framework.
However, postponing taxation does not mean relaxing regulation. The Virtual Asset User Protection Act (VAUPA) introduced in 2024 has officially taken effect, imposing stricter compliance requirements on trading platforms, including asset custody mechanisms, insider trading prevention, and user asset segregation management. The government's intent is clear: through more robust institutional design, prevent a recurrence of trust crises like Terra/Luna, and lay the foundation for the "normalization" of the crypto market.
This series of policy signals conveys a clear message: the Korean government is committed to incorporating crypto assets into the national financial governance system, driving the market's transformation from laissez-faire to "nationalization". This is precisely the vision Lee Jae-myung envisions - a digital asset market guided by the government, guaranteed by rules, and driven by innovation.
In the future, Korea's crypto policy may not be smooth sailing. Issues such as stablecoin controversies, tax implementation, and international regulatory coordination still exist. But one thing is certain: during Lee Jae-myung's term, cryptocurrency is no longer a gray area to be avoided, but a national strategy written into presidential promises. Korea's crypto industry has finally reached an institutionalized starting point.
