New Leader Pledges Bitcoin ETFs, Pension Fund Crypto Exposure, and a Won-Backed Stablecoin

Lee Jae-myung, leader of South Korea’s center-left Democratic Party, has been officially sworn in as the nation’s new president following a snap election held on June 3, which he won on a platform that prominently featured pro-crypto policies.

Lee’s victory comes just six months after the impeachment of former President Yoon Suk-yeol, who had controversially declared martial law, plunging the country into political uncertainty. The election saw a historic turnout of nearly 80% — the highest for a South Korean presidential election since 1997.

With 99% of votes counted as of June 4, Lee secured over 49% of the national vote, defeating Kim Moon-soo of the conservative People Power Party, who received around 41%, according to data from the National Election Commission.

A Strong Pro-Crypto Mandate

Lee Jae-myung’s campaign gained traction among tech-savvy voters and crypto advocates thanks to a series of proposals aimed at integrating digital assets into the nation’s financial system.

Key elements of his crypto policy agenda include:

• Allowing South Korea’s $884 billion national pension fund to invest in Bitcoin and cryptocurrencies

• Approving Bitcoin exchange-traded funds (ETFs) on domestic markets

• Launching a Korean won-backed stablecoin to enhance financial efficiency and reduce capital outflows

“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,” Lee said during a May policy forum, outlining the rationale behind the initiative.

In a rare moment of bipartisan alignment, Lee’s rival Kim Moon-soo also supported the legalization of spot Bitcoin ETFs and pledged to ease regulations around crypto adoption. However, Lee’s broader vision and association with financial innovation appeared to resonate more strongly with the electorate.

Market Reactions: Bitcoin Sees Kimchi Premium Surge

The crypto market responded quickly to the election outcome. On June 4, Bitcoin prices on South Korea’s leading exchanges, Bithumb and Upbit, surged to 149 million won ($108,480) — approximately 2% higher than global averages due to the so-called “kimchi premium.”

On international exchanges, Bitcoin briefly crossed $106,600 before retreating slightly, reflecting enthusiasm in the South Korean market amid hopes for a more favorable regulatory environment.

Election Day Draws Global Attention

The snap election drew international observers and industry voices. Dennis Porter, founder of the Satoshi Action Fund, who was in South Korea on election day, commented on the unusually high turnout:

“That number is wild,” he said, referencing the record voter participation and Lee’s commitment to bringing crypto into mainstream finance.

Analysts suggest that Lee’s win could position South Korea as a regional leader in crypto policy innovation, especially if he follows through on pledges to institutionalize Bitcoin exposure and integrate digital assets into public infrastructure.

Other Policy Priorities: Economy, AI, and Social Reform

While crypto was a headline issue in the campaign, Lee takes office facing a complex mix of economic and geopolitical challenges. These include:

• Rising living costs and a slowing economy

• Ongoing trade negotiations with the United States and China

• Regional security concerns, particularly involving North Korea

Lee has pledged to prioritize economic recovery, job creation, and technological innovation, including increased investment in artificial intelligence and defense modernization.

In his victory speech in Seoul, Lee promised to restore trust in democratic institutions and ensure military coups “remain in the past.” He also outlined a progressive social platform, including plans to reform the prosecution system and introduce a four-and-a-half-day workweek.

How Will Crypto Fit Into His Administration?

Although it remains unclear how quickly Lee will move to implement his crypto-related promises, his administration is expected to:

• Accelerate the legalization of Bitcoin ETFs through the Financial Services Commission

• Begin regulatory studies for integrating crypto into the National Pension Service

• Launch consultations with Korea’s central bank and private sector players to explore the development of a won-backed stablecoin

If realized, these initiatives could position South Korea alongside countries like the United States and Switzerland as a hub for crypto-regulated investment products and blockchain-based financial innovation.

Conclusion

The election of Lee Jae-myung marks a potential turning point for South Korea’s crypto ecosystem. Backed by strong public support and a clear electoral mandate, Lee now faces the challenge of translating campaign rhetoric into policy — balancing economic recovery, regulatory reform, and technological innovation.

With a supportive legislative environment and increasing institutional interest in crypto, Lee’s administration could set a precedent for how advanced economies approach digital asset integration at both public and private levels.

As the global crypto industry watches closely, South Korea may be on the brink of emerging as a leading nation in pro-crypto regulation and innovation under President Lee’s leadership.