Key Takeaways

• Lee Jae-myung wins South Korea’s presidency with over 49% of votes in a high-turnout snap election.

• Crypto policies were a major campaign focus, including Bitcoin ETFs and pension fund investment.

• A Korean won-backed stablecoin is on Lee’s agenda to modernize finance and prevent capital outflow.

• Bitcoin prices surged on South Korean exchanges post-election, reflecting market optimism.

• Lee’s broader strategy includes AI investment, judicial reform, and a shortened workweek.

A Decisive Win In Unprecedented Circumstances

Lee Jae-myung’s victory not only marks a dramatic end to months of political unrest but also signals a potentially transformative era for crypto adoption in the country.

The election on June 3rd comes just six months after former President Yoon Suk-yeol declared martial law, plunging the nation into political instability. According to the National Election Commission, Lee secured over 49% of the vote, outpacing his conservative rival Kim Moon-soo of the People Power Party, who received 41%.

Lee Jae-myung’s Election Victory

Source: South Korean National Election Commission

Voter turnout reached an impressive 80%, the highest for a presidential election in South Korea since 1997. With over 44.4 million eligible voters, this landslide participation reflects a nation eager for change.

Pro-Crypto Stance Sets Lee Apart

Lee’s campaign stood out for its clear and ambitious pro-crypto policies. Notably, he pledged to:

• Enable South Korea’s $884 billion national pension fund to invest in Bitcoin and other digital assets. 
• Support the launch of spot Bitcoin exchange-traded funds (ETFs). 
• Develop a Korean Won-backed stablecoin to modernize the financial system and prevent capital flight. 

South Korea Still Remains Divided

Source: X (@Jasebechervaise)

During a May policy forum, Lee stated:

“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.”

These promises resonated with South Korea’s growing crypto-savvy population and investors eager for institutional adoption of digital currencies. Still, the nation remains largely divided.

Market Response: Bitcoin Surges

Following the election results, Bitcoin prices on major South Korean exchanges such as Bithumb and Upbit surged to 149 million won ($108,480).

At the same time, Bitcoin traded at around $106,600 internationally, suggesting domestic investors were optimistic about Lee’s presidency.

A New Chapter Amid Economic & Geopolitical Challenges

Although Lee’s crypto agenda captured headlines, he inherits a country grappling with broader issues:

• Economic pressures due to inflation and rising living costs.
• Ongoing trade negotiations with the United States and neighboring countries.
• Regional geopolitical tensions, particularly with North Korea and China. 

In his first public address as president, Lee assured supporters in Seoul that his administration would prioritize economic recovery, institutional reform, and stability. He said:

“I vow to restore the economy and ensure that South Korea would never again suffer military intervention in politics.”

Crypto Policies Face Real-World Tests

While Lee’s crypto-related promises are ambitious, experts caution that implementation will depend on cooperation with regulators, banks, and global partners.

The inclusion of cryptocurrency in public pension strategies and the development of a won-backed stablecoin would also require robust legal frameworks and transparent policy oversight.

FAQ

Will South Korea’s national pension fund actually invest in Bitcoin?
Lee Jae-myung has proposed allowing it, but formal adoption will require legislative approval and risk assessment by financial regulators.

What is the “kimchi premium”?
The kimchi premium refers to the higher price of cryptocurrencies on South Korean exchanges compared to global averages, often driven by local demand and regulatory differences.

Could South Korea launch its own stablecoin?
Yes, Lee has expressed interest in creating a won-backed stablecoin, but details remain speculative until further policy frameworks are announced.

How does Lee’s crypto stance compare to Kim Moon-soo’s?
Both candidates supported crypto ETFs and loosening regulations, but Lee’s approach was more aggressive, including pension investment and stablecoin development.

What are the biggest hurdles Lee might face in crypto policy implementation?
Legal resistance, financial regulation, and international coordination are likely to be the biggest challenges.