As South Korea’s June 3rd snap presidential election approaches, political parties are ramping up efforts to win the support of the nation’s 18 million cryptocurrency investors. Both the ruling and opposition camps have unveiled ambitious policies targeting the digital asset sector, including legislation for asset-backed tokens (STOs), the legalization of spot ETFs, and comprehensive digital asset frameworks. However, skepticism remains about the feasibility and sincerity of these promises.
■ People Power Party: Seven-Point Roadmap Toward a ‘Global Digital Asset Powerhouse’
The conservative People Power Party (PPP) announced a seven-point agenda to foster the digital asset industry:
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Abolishment of the “One Exchange–One Bank” policy
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Legalization of spot cryptocurrency ETF trading
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Institutionalization of corporate and institutional crypto investment
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Full-scale legislation of Security Token Offerings (STO)
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Regulatory framework for stablecoins
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Enactment of a Digital Asset Promotion Act
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Reform of crypto taxation policies
Candidate Kim Moon-soo emphasized allowing public institutions like the National Pension Service and Korea Investment Corporation (KIC) to invest in crypto, vowing to position South Korea as a global leader in digital finance.
■ Democratic Party: Legislative Push for Comprehensive Digital Asset Law
The Democratic Party is also taking proactive steps. Lawmaker Min Byung-deok unveiled a draft of the “Digital Asset Basic Law No. 1”, which outlines:
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Implementation of a licensing system for stablecoin issuers
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Establishment of a Digital Asset Commission
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Legalization of digital asset ETFs
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Standardization of terminology (e.g., replacing “virtual asset” with “digital asset”)
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Policy infrastructure to support STOs and tokenized finance
Candidate Lee Jae-myung’s policy advisory group, “Growth and Integration,” includes Kim Yong-jin, a top STO expert and professor at Sogang University, signaling a strong policy direction. Lee’s camp stated that a comprehensive digital asset policy reflecting feedback from the industry, academia, and public will be announced soon.
■ Industry Reaction: Repeated Promises, Uncertain Execution
While the digital asset industry views the renewed policy focus as a positive sign, skepticism persists regarding political follow-through.
The Korea Digital Asset Business Association (KDA) released its own list of nine key policy recommendations, calling on lawmakers to take action. However, many within the industry remain doubtful, viewing the announcements as yet another round of campaign rhetoric.
One exchange representative commented, “Abolishing the ‘one exchange–one bank’ rule has long been a core demand, but we question whether policymakers truly understand the structural implications. The real issue is proving their ability to execute.”
