Three South Korean Presidential Candidates Agree to Support Bitcoin ETFs: Markets Entering a New Era
Seoul, South Korea – The 2025 South Korean presidential race is taking an unprecedented turn as all three major candidates have come out in support of legalizing spot Bitcoin exchange-traded funds (ETFs). The unified move signals that digital assets have officially become a central part of the nation’s economic policy and have the potential to reshape the entire financial landscape of South Korea.
Political Panorama: Bitcoin Takes Center Stage in Election Campaign
According to CryptoQuant CEO Ki Young Ju, candidates Lee Jae-myung (Democratic Party), Kim Moon-soo (People Power Party), and Lee Jun-seok (New Reform Party) have all made strong commitments to promoting a legal framework to legalize Bitcoin ETFs, facilitate institutional investment, and reduce reliance on retail investors – which currently account for nearly 100% of cryptocurrency trading volume in South Korea.
Lee Jae-myung emphasized his commitment to “creating a safe investment environment for the younger generation” by allowing spot trading of cryptocurrency ETFs, cutting transaction fees, and expanding access to digital financial products.
International Landscape: South Korea Is Falling Behind
While the US approved a spot Bitcoin ETF in January 2024 and Hong Kong became the first market in Asia to launch a Bitcoin and Ether ETF in April 2024, South Korea still has strict restrictions. The “one bank, one exchange” rule limits exchanges to working with only one bank to verify user identities, slowing the development of the cryptocurrency ecosystem.
However, with around 16 million cryptocurrency owners – nearly 36% of the total electorate – South Korea is still considered one of the most vibrant cryptocurrency markets in the world. “We cannot afford to leave Korea behind in the global financial revolution,” warns financial analyst Minjae Park (Seoul National University).
Regulatory Reform: The Basis for Transformation
Since 2021, South Korea has been gradually tightening control and consumer protection in the digital asset sector. The Virtual Asset User Protection Act (effective from July 2024) has laid the foundation for a strong legal framework aimed at market transparency and safety.
The Financial Services Commission (FSC) is preparing to implement the second phase of its cryptocurrency law in the second half of 2025, focusing on the supervision of stablecoins and digital asset issuance activities. “We are building a comprehensive ecosystem that includes issuers, service providers, and users,” said FSC Vice Chairman Kim So-young.
Market Opportunities and Global Implications
The legalization of Bitcoin ETFs could be a turning point in the Korean market’s transition from retail trading to a more professional and stable structure. Pension funds, insurance companies, and financial institutions will have the opportunity to participate in the cryptocurrency market in a legal and regulated manner.
In particular, the "Kimchi Premium" - the phenomenon of Bitcoin prices in Korea being higher than the global market - can be narrowed thanks to large capital inflows and improved liquidity from institutions. "The approval of an ETF will create huge capital inflows and reduce volatility caused by individual investors," said Kim from Blockchain News.
In addition, ETFs also bring practical benefits to retail investors by reducing technical barriers, avoiding security risks, and creating convenience in indirect investment in cryptocurrencies.
Ranking and Future: South Korea Faces a Golden Opportunity
According to the Global Bitcoin Policy Index (GBPI), South Korea is currently ranked 13th out of 35 countries evaluated, with a score of 69/100. To improve its competitive position against leading countries like Switzerland, Singapore, and El Salvador – which have been praised for their balanced policies on innovation and consumer protection – South Korea needs to take concrete actions rather than just stop at commitments.
If realized, the ETF policy could move the country closer to becoming an Asian digital finance hub, competing directly with Hong Kong, Singapore, and even the US.
Conclusion
The upcoming presidential election is not just a political contest, but also a strategic debate on South Korea’s digital financial future. With a rare consensus among all three candidates on a Bitcoin ETF, the turning point may be near. The important thing is: who will actually turn the commitment into action?