Key Takeaways
- The leading candidates in South Korea’s presidential election support pro-crypto policies.
- Kim Moon-soo and Lee Jae-myung both want to legalize crypto ETFs.
- However, they diverge on the “one exchange, one bank” rule.
With South Koreans set to head to the polls on Tuesday, June 3, both leading candidates in the country’s presidential election have proposed policies that could benefit the crypto industry.
In the run-up to the election, both Lee Jae-myung of the Democratic Party of Korea (DPK) and Kim Moon-soo of the People Power Party (PPP) have called for regulatory reform and the easing of restrictions that currently stifle cryptocurrency investment and adoption.
South Korean Candidates Propose Pro-Crypto Policies
One area of crypto policy where Kim Moon-soo and Lee Jae-myung are aligned in their approach to spot crypto exchange-traded funds (ETFs).
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Both main parties support legalizing crypto ETFs, which would allow funds that hold cryptocurrencies to be listed on South Korean securities exchanges.
The two candidates also share a commitment to easing restrictions that currently prohibit government bodies from investing in crypto.
In April, Kim Moon-soo said he would “allow government agencies such as the National Pension Service and Korea Investment Corporation to invest in virtual assets.”
Likewise, Lee’s campaign said he would allow the National Pension Service to directly invest in virtual assets.
Differences Between Candidates’ Crypto Pledges
Despite their similarities, the candidates in South Korea’s upcoming election aren’t in lockstep on every issue.
Lee Jae-myung recently came out in support of a won-backed stablecoin, which he said would help prevent the outflow of wealth currently diverted toward USD-denominated stablecoins.
Meanwhile, Kim Moon-soo has made tax relief a central part of his pitch to pro-crypto voters.
Crucially, the PPP wants to scrap a planned tax on capital gains from financial investments, which is currently due to take effect in 2025.
Although both candidates have promised to reform South Korea’s banking sector, they diverge on one key issue that affects the crypto industry.
Kim Moon-soo supports abolishing a rule that currently prevents crypto exchanges from having multiple banking partners.
Although the DPK considered proposing a similar idea, it ultimately determined that “one exchange, one bank” rule serves an important anti-money laundering function.
Kim Moon-soo vs. Lee Jae-myung Crypto Policies
| Policy Area | Lee Jae-myung (DPK) | Kim Moon-soo (PPP) |
|---|---|---|
| Crypto ETFs | Supports the legalization of spot cryptocurrency ETFs. | Supports the legalization of spot cryptocurrency ETFs. |
| State Investment | Proposes letting the National Pension Service invest in crypto | Supports permitting government bodies to invest in crypto assets |
| Crypto Regulation | Calls for a regulatory framework for digital assets, stablecoins and tokenized securities. | Calls for a regulatory framework for digital assets, stablecoins and tokenized securities. |
| Banking Reform | Supports maintaining the “one exchange, one bank” rule. | Proposes dismantling the rule to enhance competition and accessibility within the crypto market. |
| Stablecoins | Advocates for a won-backed stablecoin | No specific policies. |
| Tax Relief | Tax reform plans don’t affect crypto. | Wants to scrap a planned tax on investment income. |
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