South Korea’s pro-crypto candidate, Lee Jae-myung wins presidency, vows crypto revolution

South Korea’s political landscape has shifted dramatically as pro-crypto candidate Lee Jae-myung, the progressive Democratic Party leader, secured a decisive victory in the snap presidential election.

The election, held on June 3, saw an 80% voter turnout, the highest since 1997. This reflected widespread frustration with outgoing President Yoon Suk-yeol’s chaotic tenure, which ended in martial law. Lee Myung capitalized on this discontent, positioning himself as a reformer ready to embrace blockchain innovation and economic modernization.

With 99% of ballots tallied by June 4, Lee Jae-myung of the center-left Democratic Party secured a decisive 49% of the vote, outpacing conservative rival Kim Moon-soo of the People Power Party, who trailed with 41%, official data from the National Election Commission revealed

Crypto agenda: Bitcoin ETFs, pension fund investments, and a won stablecoin

Central to Lee Jae-myung’s campaign was a pledge to transform South Korea into a global crypto hub. His policies include:

• Allowing the $884 billion national pension fund to invest in Bitcoin and other cryptocurrencies

• Approving Bitcoin ETFs, mirroring the U.S.’s landmark move earlier this year

• Launching a government-backed Korean won stablecoin to reduce reliance on overseas assets like Tether

“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,” Lee Jae-myung declared during a May policy debate.

Analysts say this could stabilize remittances and streamline cross-border transactions.

Market reaction and the “kimchi premium” returns

As news of Lee Jae-myung’s victory spread, Bitcoin prices on South Korean exchanges like Upbit and Bithumb surged to 149,000 won ($108,480)—a 2% premium over global rates. Traders dubbed this the return of the “kimchi premium,” a phenomenon where crypto trades higher domestically due to strict capital controls.

Dennis Porter of the Satoshi Action Fund, who observed the election firsthand, called the turnout “wild” and praised Lee Jae-myung’s “pro-growth” stance. Meanwhile, rival candidate Kim Moon-soo, who also supported crypto ETFs, conceded defeat but urged unity amid economic headwinds.

Beyond crypto: Economic revival and geopolitical hurdles

While Lee Jae-myung’s crypto policies grabbed headlines, his administration must tackle soaring living costs, U.S. trade tensions, and North Korean threats. In his inaugural address, Lee Jae-myung vowed to “restore the economy from day one” through AI investment, defense upgrades, and a shorter workweek.

Critics question whether crypto reforms will take priority, but supporters argue Lee Jae-myung’s plan aligns with South Korea’s tech-savvy identity. “Crypto isn’t just speculation—it’s about future-proofing our economy,” said Seoul-based analyst Ji-hoon Kim.

The road ahead

As Lee Jae-myung assumes office, all eyes are on his ability to balance innovation with stability. Will his pro-crypto agenda attract global investors, or will geopolitical risks derail progress? South Korea’s financial future is poised for a dramatic shift under Lee Jae-myung’s leadership.