As South Korea’s presidential election enters its final stretch, Lee Jae-myung, the candidate from the opposition Democratic Party, formally unveiled his cryptocurrency policy agenda on April 6. He pledged to legalize spot ETFs for digital assets including Bitcoin, reduce trading fees, and establish an integrated regulatory system—all aimed at creating a safer, more youth-friendly investment environment.
Lee Jae-myung: Legalizing Bitcoin ETFs to Ease Youth Investment Pressure
According to The Korea Economic Daily, Lee shared his youth-focused financial policy via social media, emphasizing the institutionalization of crypto spot ETFs, reduction of trading commissions, development of a comprehensive monitoring system, and implementation of government-led market order reforms.
“I will build a secure investment environment where young people can grow their assets and plan for their future,” Lee stated.
This marks the first time Lee has explicitly addressed virtual asset policy in his presidential campaign. Although his Democratic Party had previously floated similar ideas, and the Financial Services Commission (FSC) expressed willingness to revisit ETF regulations and institutional investor bans, no concrete action followed—until now.
Given the high barriers to entry in real estate and stock markets, many young Koreans have turned to cryptocurrencies as high-risk, high-reward investments. Lee’s proposals aim to institutionalize the crypto market to enhance safety and regulation, addressing this growing trend among younger generations.
Ruling Party Also Backs Crypto Reform—A Rare Bipartisan Consensus
The ruling People Power Party has also unveiled a "Seven-Point Virtual Asset Policy Pledge", which includes spot ETF approval, abolishing the “one exchange, one bank” rule, allowing corporate investors into the crypto market, and creating a regulatory framework for stablecoins.
The "one exchange, one bank" policy—which mandates each crypto exchange partner with only one domestic bank—was originally introduced to enhance transparency and anti-money laundering efforts, but is now widely criticized for hindering exchange growth. Despite differing emphases—the Democratic Party targeting youth and the People Power Party focusing on institutional reform—both parties appear aligned in accelerating crypto market legalization.
Policy Strategy: Targeting Young Male Voters with Economic Incentives
Lee’s crypto-focused proposals are part of a broader youth strategy, aimed particularly at male voters aged 20 to 30, where Democratic Party support has historically been weaker.
He also pledged to:
- Include military service years in all public sector career point systems.
- Credit military service time toward national pension contributions.
- Expand housing support, including rent subsidies and half-price dormitories.
- Provide job-seeking insurance subsidies, relax student loan conditions, and increase interest reduction programs.
16 Million Koreans Hold Crypto Accounts—A Key Voting Bloc
On the other side, the People Power Party has nominated Kim Moon-soo, former Minister of Employment and Labor, as its presidential candidate. The party's previous leader, Yoon Suk-yeol, was impeached after declaring martial law in December.
According to recent statistics, over 16 million South Koreans, roughly 31% of the total population, own cryptocurrency accounts—mostly among the younger demographic. This makes crypto regulation a critical battleground in the upcoming election.
Recent polls show Lee Jae-myung leading with 42% support, followed by acting President Han Duck-soo at 13%. The final outcome will be determined on June 3.
