President Lee Jae-myung’s rise to South Korea’s highest office marks the return of a left-leaning populist with deep working-class roots and bold plans for institutional crypto integration.
Though crypto was not directly mentioned in Lee’s inauguration speech on June 4 after the impeachment of his predecessor, Yoon Suk Yeol, Lee now leads the country with a list of crypto promises made during his campaign.
His administration is expected to accelerate the integration of digital assets into Korea’s regulatory and financial systems on the back of the Democratic Party’s Digital Asset Committee.
Lee’s rise from a teenage factory worker to a human rights lawyer has shaped his reputation as a reformist. After narrowly losing the 2022 election, in which he campaigned on universal basic income, he returned with revised promises focused on a “basic society,” advocating shorter work weeks and targeted basic income.
Despite his victory, Lee begins his term under the shadow of ongoing controversies, including real estate scandals, alleged illegal funding to North Korea and a 2024 stabbing he survived.
President Lee backs crypto for big money
Lee is expected to oversee major crypto policy changes in South Korea, including the likely enactment of the Digital Asset Basic Act (DABA). The progress began under Yoon, who campaigned on it but couldn’t see it to fruition due to his premature dismissal.
Recently, the Democratic Party formed a Digital Asset Committee led by lawmaker Min Byoung-dug, who is aiming to pass DABA through the National Assembly this year. Min said in a recent local media interview that the bill will propose a legally recognized self-regulatory body, a stablecoin approval system and clearer rules for crypto service providers.
Lee also championed approving spot crypto exchange-traded funds (ETFs), which are currently banned under existing law, and allowing the National Pension Service to invest in digital assets. Regulatory discussions on crypto ETFs were already heating up before the election, and the Financial Services Commission has launched a phased strategy to bring institutional investors into crypto. His main election rival, Kim Moon-soo, backed the same initiatives.
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What set Lee’s crypto policies apart was his proposal to launch a won-based stablecoin. A flashy stablecoin can spark painful memories for South Korean investors who bet on a homegrown multibillion-dollar failure: the Terra project and its algorithmic stablecoins. Lee’s stablecoin contrasts with Terra as he proposed a centralized, fiat-backed currency consistent with global regulatory trends.
Digital Asset Committee leader Min said innovation should come from the private sector. He cited the example of promoting won-based stablecoins in Southeast Asia by leveraging K-culture: South Korean content like K-pop and K-dramas.
Lee has voiced support for small and medium-sized enterprises and startups, consistent with his underdog narrative. He also advocates revising the “one exchange, one bank” rule, which has resulted in a monopolistic environment for domestic crypto exchanges.
President Lee’s diplomacy and plans for North Korea
One of the key issues South Korean voters weigh when choosing a president is their stance on North Korea. Lee has pushed to open communications channels for dialogues and peace talks with the North.
Pyongyang is a disruptive player in the global crypto space. It has been linked to the largest cryptocurrency heist in history, and its state-sponsored hackers have reportedly posed as freelancers and job applicants to infiltrate crypto firms — all to allegedly fund its weapons program.
Former president Yoon, a conservative, adopted a hardline approach to the North, reversing many of the diplomatic overtures made under his predecessor Moon Jae-in, who led from 2017 to 2022.
Lee has emphasized maintaining strong ties with the US and Japan while seeking better relations with China. Yoon’s administration was widely viewed as having alienated Beijing. Meanwhile, Lee’s calls for “balanced diplomacy” have drawn mixed reactions — seen by some as pragmatic, by others as a potential drift from South Korea’s traditional Western alliances.
Following Lee’s victory, Chinese President Xi Jinping vowed to strengthen relations between the two nations.
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Lee will be under a microscope to keep his promise of easing political instability. Yoon’s controversial declaration of martial law before his impeachment shocked the international community. It marked South Korea’s second presidential impeachment in less than a decade.
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