Lee Jae-myung, a South Korean candidate for the Democratic Party, has won the presidency during a national election, securing 48% of the vote. Lee entered the election cycle, focusing on regulating cryptocurrencies as a key priority. Lee is considered a pro-crypto candidate due to his balanced views about digital assets. Amongst Lee’s priorities, he promises to lift the ban on spot Bitcoin ETFs and enable crypto purchases for state-backed pension funds.
Lee, however, is not the first South Korean politician to be pro-crypto. Many pro-crypto politicians entered into leadership positions before him, yet failed to implement their pro-crypto policies. There are various reasons for these setbacks, including political upheavals and a lack of momentum in the South Korean market. However, times have changed, and many countries embrace crypto at the federal and state levels. The local crypto community, including retail investors, sees this presidential contest as a win for digital assets.
Dennis Porter, founder of Satoshi Action Fund, said the turnout was phenomenal, indicating that the general public supported the President’s crypto agenda. Porter travelled to South Korea to be present during this momentous occasion. President Lee has promised to allow South Korea’s $884 billion pension fund to have portions allocated to Bitcoin and crypto investments. Porter believes this is a huge win for the crypto community across the globe. Lee also envisions a South Korean won-backed stablecoin to incentivise crypto use in the country and to stop capital flight from occurring. Lee commented that he wanted to modernize the country’s financial system and prevent capital outflow from draining the nation’s wealth. Lee’s campaign focused on promoting Bitcoin spot ETFs, which are currently banned in South Korea.
Lee announced that the election was “judgment day” against the previous administration and its mistakes, including an unpopular martial law attempt and a failure of the People Power Party to distance itself from the controversy. South Korea saw the largest turnout since 1997, with 80% of the country’s 44.39 million eligible voters turning out on election day.
At 99% of votes counted, the Democratic Party holds 49.3% of the vote, while the People Power Party holds 41.3% of the vote. Lee is the frontrunner for the Democratic Party, while Kim Moon-soo is the frontrunner for the People Power Party. Kim has officially conceded defeat. Local media outlets had expected Lee to win the election. Cheers of jubilation were heard when news outlets reported that Lee had won by a large margin. Lee also announced the results and vowed to unite the country after the election.
South Korea has faced numerous challenges leading up to the election, including a struggling economy, trade disputes, major geopolitical conflicts in the region, and a cost-of-living crisis. The election’s primary focus was to prevent military coups from happening again. However, crypto freedoms were also discussed as a major election promise. Lee has promised to fix the economy and to promote business in South Korea. Crypto regulation may play a role in such an economic recovery plan. Many pro-crypto candidates before Lee have not made good on their promises.
Time will tell whether Lee and the Democratic Party will secure more freedoms for South Korean traders. The fact that Lee won by a large margin may suggest that he will have many freedoms to promote his election promises with very little opposition. The military coup may have accelerated Bitcoin growth in South Korea because it bolstered the opposition parties and united the country behind pro-crypto regulations. Lee has further promised to strengthen the economy by investing in artificial intelligence and national defence technology.
In a May policy discussion, Lee announced that he would endorse a won-backed stablecoin to prevent capital from leaking out of the country. He also reiterated his commitment to allow public pension funds to invest in digital assets. South Korea currently holds around $884 billion within its National Pension Service. Lee stated that he wished to create a safe investment environment so young people could save and invest for their future.
This would inevitably involve allowing young people to choose which investments they wish to make, including cryptocurrencies and blockchain technology. Lee lost the election in 2022 by a narrow margin. The Supreme Court is still investigating Lee for election law violations. He will have many challenges when entering office, including a trade dispute with President Trump. The South Korean election 2025 has been hailed as a great political comeback. The failed military coup played a part in solidifying the Democratic Party’s base.