Democratic Party presidential candidate Lee Jae-myung has vowed to approve Bitcoin ETFs if elected. The pledge marks the most decisive pro-crypto position yet from a top contender ahead of the nation’s pivotal June 2025 elections.
The announcement has reignited the debate over the country’s strict stance on digital asset regulation, with Lee calling for Bitcoin ETFs to be legalized in a way that ensures both investor protection and financial innovation.
His campaign promises also include reducing digital asset transaction fees and boosting safeguards for younger investors, many of whom are turning to crypto as an alternative to traditional wealth-building.
“It’s time to give everyday investors a safer, more regulated way to access Bitcoin,” Lee said in a statement. “Bitcoin ETFs can bridge the gap between digital assets and traditional finance.”
A Policy Shift May Be Coming
South Korea has long maintained a cautious approach to crypto, despite being one of the world’s most active markets. Currently, investors rely on foreign exchanges or indirect exposure to invest in Bitcoin ETFs, due to the Financial Services Commission (FSC) deeming them incompatible with current Korean laws.
However, momentum is building for change. The ruling People Power Party (PPP) has recently shown openness to revisiting the ban, and the issue is rapidly becoming a key topic in the national conversation.
Lee’s domestic proposal to legalize Bitcoin ETFs reflects growing public demand for transparent, regulated investment vehicles. Crypto ownership is especially high among Koreans in their 20s and 30s, a demographic increasingly frustrated with limited investment options.
Global Trends Add Pressure
Internationally, countries like the United States, Canada, Brazil, and Hong Kong have already rolled out Bitcoin ETFs with growing institutional and retail adoption. South Korea’s delay has put its financial markets at risk of falling behind in the global competition for fintech leadership.
Industry experts argue that approving Bitcoin ETFs could:
-
Keep investor capital inside South Korea
-
Allow retirement and mutual funds to participate in crypto
-
Improve price transparency and reduce market manipulation
-
Foster fintech innovation and international credibility
As one of Asia’s most digitized economies, South Korea could benefit significantly from tapping into the booming Bitcoin ETF market, which saw record inflows in the U.S. alone following recent SEC approvals.
The Road Ahead
The future of Bitcoin ETFs in South Korea may ultimately come down to the election results. With Lee’s crypto-forward policies gaining traction among young, urban voters, his campaign could set the tone for a new era of financial inclusion.
Yet regulatory hurdles remain. The FSC has not softened its stance and continues to raise concerns about volatility, systemic risk, and investor protection. Bridging the gap between regulators and innovators will be essential if South Korea wants to follow through on this vision.
For now, all eyes are on the June 3rd vote—and the rising political power of Bitcoin ETFs.
Conclusion
South Korea may be on the verge of a major crypto transformation. With leading presidential candidate Lee Jae-myung pledging to approve Bitcoin ETFs, the country could finally unlock regulated, mainstream access to digital assets. His bold stance taps into the growing demand from young investors and sets a powerful tone for the 2025 election.
If Lee’s campaign succeeds, Bitcoin ETFs could become a gateway to wider crypto adoption, innovation, and financial inclusion in one of Asia’s most tech-forward economies. Whether this promise turns into policy will depend on the election results. However, one thing is clear: crypto is now a defining issue in South Korea’s future.
Follow us on Twitter and LinkedIn, and join our Telegram channel for more news.
Frequently Asked Questions (FAQs)
1. What are Bitcoin ETFs and why do they matter in South Korea?
Bitcoin ETFs (Exchange-Traded Funds) allow investors to gain exposure to Bitcoin through traditional stock markets. In South Korea, they could make crypto investment safer, more regulated, and accessible.
2. Who is proposing the approval of Bitcoin ETFs in South Korea?
Presidential front-runner Lee Jae-myung from the Democratic Party has pledged to legalize Bitcoin ETFs if elected in 2025.
3. Are Bitcoin ETFs currently legal in South Korea?
No. As of now, Bitcoin ETFs are not permitted under South Korea’s existing financial regulations, due to concerns raised by the Financial Services Commission (FSC).
4. Why is there opposition from regulators?
The FSC argues that Bitcoin ETFs may violate local laws and pose risks such as high volatility, investor losses, and lack of legal clarity around crypto assets.
5. Could the 2025 election impact the approval of Bitcoin ETFs?
Yes. If Lee Jae-myung wins and follows through on his promises, it could lead to the first wave of legalized Bitcoin ETFs in South Korea, aligning the country with global crypto markets.
Glossary
Bitcoin ETF (Exchange-Traded Fund):
A financial product that tracks the price of Bitcoin and can be traded on traditional stock exchanges, allowing investors to gain exposure without directly holding BTC.
FSC (Financial Services Commission):
South Korea’s top financial regulator responsible for oversight of banks, securities, and insurance, including digital asset policies.
Crypto Regulation:
Government rules and laws govern how cryptocurrencies and blockchain technologies can be used, traded, or taxed.
Spot ETF:
An ETF backed by actual assets (in this case, Bitcoin) rather than futures contracts, offering direct price exposure.
Lee Jae-myung:
A progressive South Korean politician and 2025 presidential front-runner known for his reformist economic and digital asset policies.
