A New Leader, a New Era for Korean Crypto
Lee Jae-myung, once a teenage factory worker and now South Korea’s president, is spearheading a dramatic policy shift that could reshape one of the world’s largest digital asset markets. Following the impeachment of conservative former president Yoon Suk Yeol, Lee took office on June 4, signaling a new direction rooted in progressive, crypto-friendly values. While his inauguration speech didn’t directly mention crypto, Lee's campaign was filled with promises to support the integration of digital assets into South Korea’s financial and regulatory systems.
A former human rights lawyer, Lee returns to the presidency with a populist message. His platform included universal basic income, shorter work weeks, and a commitment to support digital innovation. His rise, marked by a narrow 2022 election loss and a 2024 stabbing attempt, sets the tone for a presidency already defined by disruption and bold reform.
Building the Crypto Framework
Lee's administration is poised to accelerate legislation around digital assets, notably through the Digital Asset Basic Act (DABA). The bill, currently championed by Democratic Party lawmaker Min Byoung-dug, aims to establish a legally recognized self-regulatory body, set approval systems for stablecoins, and clarify rules for crypto providers. This effort began under Yoon but stalled due to political instability. Now, under Lee’s leadership, DABA is expected to pass through the National Assembly before the end of the year.
One of Lee’s boldest moves is his proposal for a won-based stablecoin, a centralized, fiat-backed currency aligned with global regulatory norms. This stands in stark contrast to the failed TerraUSD experiment, which still casts a shadow over South Korea's crypto landscape. Lee believes this government-issued stablecoin could drive international adoption, especially across Southeast Asia where K-pop and Korean culture already hold sway.
Lee also supports allowing the National Pension Service to invest in digital assets, revising restrictive rules like the “one exchange, one bank” regulation, and approving spot crypto ETFs currently banned under existing laws.
A Reformist Under Pressure
Despite his forward-looking stance, Lee’s presidency starts under a legal cloud, with five ongoing criminal cases. These include election law violations, corruption allegations, misuse of public funds, unauthorized transfers to North Korea, and subornation of perjury. The most closely watched case—a remand trial for violating the Public Official Election Act—begins June 18.
As legal experts debate whether presidential immunity applies to trials already underway, Lee's ability to lead could be tested in courtrooms as much as in parliament. Still, he has pledged to reform South Korea’s democracy, proposing constitutional amendments that would allow two four-year presidential terms and greater checks on executive power.
Lee’s Global Crypto Vision
Lee’s foreign policy balances strong U.S. and Japan ties with closer relations with China, an approach that some see as pragmatic and others as a shift from Korea’s traditional alliances. Following Lee’s election, Chinese President Xi Jinping pledged to strengthen bilateral ties, suggesting a warming of regional relations that could have implications for crypto diplomacy and regulation.
His crypto agenda aligns closely with global trends. As nations explore crypto ETFs, digital currencies, and stablecoin legislation, South Korea now seems ready to play a leading role. Investors have taken notice—institutional capital, long hesitant due to Korea’s rigid compliance standards, is now eyeing opportunities in a more open and integrated market.
