South Korea’s Presidential Candidate Lee Jae-myung Promises Crypto ETFs and Lower Transaction Fees to Capture Young Voter Support: Can He Win Over Their Votes?

Lee Jae-myung Promises Crypto Reforms in Bid to Gain Support from Young Voters

As South Korea's presidential race heats up ahead of the 3 June election, Lee Jae-myung, the Democratic Party candidate, is positioning himself as a champion for younger voters by pledging significant reforms in the cryptocurrency sector.

With more than 16 million "coin investors" in South Korea—outnumbering stock investors—Lee's promises aim to address the growing demand for crypto-friendly policies.

Lowering Crypto Transaction Fee for Young Voters

Lee's main pledge is to reduce transaction fees on virtual asset exchanges, which have been a source of frustration for many investors.

In an address to supporters in North Chungcheong Province on 6 May 2025, Lee assured that his government would create a safer and more accessible environment for crypto investment.

Lee Jae-myung

Lee, who is aware of the importance of financial security for the younger generation, said

“I will create a safer environment for investment. That will help young people build up their assets and plan for the future,”

In South Korea, where crypto exchanges are currently free to set their transaction fees, Lee's administration could potentially impose a cap on these fees if he wins the election.

This is a crucial point for traders, especially considering recent promotions by exchanges like Bithumb, which have offered commission-free trading for limited periods, boosting trading volumes significantly.

Lee's Plan: Making Crypto Spot ETFs Official for Easier Investment

Another central element of Lee's crypto policy is the introduction of Bitcoin spot exchange-traded funds (ETFs), a financial product that allows investors to gain exposure to Bitcoin without directly holding the asset.

This follows the trend set by the US, which approved Bitcoin spot ETFs in early 2024.

In his address, Lee stated,

“We will introduce virtual asset real-time ETFs and build an integrated monitoring system to create a secure virtual asset investment environment.”

Spot ETFs would enable institutional investors to participate in the market, which could drive significant capital inflows and, in turn, increase the value of cryptocurrencies.

This move is expected to satisfy the strong demand from South Korean investors, who have long called for the legalisation of such financial products.

Additionally, Lee has suggested that transaction fees for virtual assets could be reduced to match the average domestic stock transaction fee of 0.015%, an idea that would resonate with many crypto traders who have voiced concerns about high costs.

A Competitive Race for the "Coin Votes"

Lee’s crypto policy is a direct response to the actions of his main rival, Kim Moon-soon, the candidate for the ruling People Power Party (PPP).

Kim Moon-soo

Kim has also courted younger voters by proposing to allow South Korea’s state pension fund and the Korea Investment Corporation to make direct crypto investments.

Furthermore, the PPP has rolled out a series of crypto-related pledges, including plans to establish a dedicated virtual asset secretary within the presidential office and create a digital asset committee to oversee crypto developments.

While both candidates are striving to win the support of South Korea's crypto-savvy population, Lee’s proposal for Bitcoin spot ETFs has been particularly noteworthy.

These pledges are seen as part of a broader effort by both candidates to appeal to young voters, who represent a significant portion of the electorate.

Can Lee Deliver on Crypto Promises?

Despite the ambitious pledges, skepticism remains regarding the candidates’ ability to deliver on these promises.

Analysts have pointed out that the Democratic Party previously pledged to legalise Bitcoin spot ETFs ahead of the 2024 legislative elections, yet no significant progress has been made on that front.

Lee’s promises may face similar challenges, particularly if he is unable to navigate the regulatory complexities surrounding the crypto market.

However, with recent opinion polls showing Lee ahead by around 20 percentage points, his message seems to be resonating with voters.

The upcoming election, set for 3 June 2025, is expected to shape the future of crypto regulation in South Korea and could signal a shift towards a more crypto-friendly environment in the country.

The Young Voter Factor: Will Lee's Crypto Promises Be Enough?

With young voters making up a substantial portion of the electorate, Lee’s crypto pledges could be a crucial factor in securing victory.

His campaign is clearly tailored to the interests of this demographic, focusing on policies that aim to address financial concerns and create a more secure investment landscape.

Whether Lee’s promises on crypto and other policies, such as expanding youth housing and pension credits, will translate into votes remains to be seen.

But with the crypto market playing an increasingly prominent role in South Korean society, his stance on virtual assets will undoubtedly be a key issue in the race for the presidency.