Lee Jae-Myung Wins Tightly-Contested Korean Presidential Election

South Korea’s newly elected president, Lee Jae-myung, has officially taken office after securing just over 49% of the vote, defeating his right-wing rival Kim Moon-soo, who garnered 41.15%, according to Reuters.

Lee was sworn in during an inauguration ceremony held on June 4, marking the beginning of a presidency with strong implications for the country’s rapidly evolving digital asset landscape.

This year’s election was a defining moment for South Korea’s crypto community. With one-third of the population reportedly holding digital assets, according to Bloomberg, crypto policy played a central role in candidates’ campaign platforms.

The Bank of Korea estimates that South Koreans collectively hold $74.5 billion worth of crypto assets, underscoring the growing importance of digital finance in the nation.

A Race to Win Crypto Voters

During their campaign, both Lee and Kim acknowledged the rising influence of crypto in the electorate and adopted more pro-crypto stances than all previous cycles.

Their platforms emphasized regulatory reform, broader access, and institutional adoption.

Among Lee’s flagship proposals is the legalization of spot crypto exchange-traded funds (ETFs)—a position that surprisingly drew bipartisan support, with Kim Moon-soo and the conservative People Power Party also backing the initiative.

Both sides have publicly committed to legalizing spot Bitcoin ETFs, aiming to give investors regulated exposure to assets like Bitcoin and Ethereum.

Lee has also suggested that South Korea’s national pension fund, which manages an estimated $884 billion, be permitted to allocate a portion of its portfolio to digital assets—a potentially game-changing move for institutional crypto adoption in Asia.

Push for Korean Won-Backed Stablecoins

Beyond ETFs, President Lee’s party—the Democratic Party of South Korea—has laid out ambitious plans to position the country as a leader in the stablecoin race.

The party is actively working to advance legislation focused on Korean won-pegged stablecoins, drawing parallels to U.S. efforts like the GENIUS Act.

Min Byeong-deok, chairman of the party’s Digital Asset Committee, has emphasized the strategic urgency of launching domestically backed stablecoins before U.S. dollar-based versions dominate the global market.

“We need to take the lead in institutionalizing stablecoins before U.S. dollar-based stablecoins become firmly established. That is the only way we can secure a sure position in the global battle for stablecoin hegemony.”

Min believes that stablecoins could become even more transformative than AI or semiconductors, industries in which South Korea is already a global leader.

Lee’s party is actively developing new digital asset legislation, with a draft bill titled the "Basic Act on Digital Assets".

The bill is expected to lay the foundation for stablecoin regulation, investor protection, and market infrastructure tailored to the fast-moving crypto economy.

With Lee Jae-myung now officially in office, all eyes are on how quickly these campaign promises turn into policy—and whether South Korea can assert itself as a major force in the global digital asset race.