South Korea Presidential Candidates Back Bitcoin ETFs, Institutional Investment

In a significant development for South Korea’s political and financial landscape, all three leading presidential candidates in the upcoming June 3 election have expressed support for Bitcoin exchange-traded funds (ETFs) and institutional investment in virtual assets. This marks a historic shift, as digital assets have become a central issue in the presidential race, reflecting the growing influence of retail crypto investors and aligning with global trends.

Currently, South Korea prohibits institutional investment in cryptocurrencies, and Bitcoin ETFs are not permitted. As a result, the country’s crypto trading volume is entirely driven by retail investors. However, the rising popularity of digital assets among the youth and the middle class is shaping the candidates’ platforms. Lee Jae-myung, the Democratic Party of Korea candidate, and Kim Moon-soo of the conservative People Power Party have both released forward-looking pledges targeting crypto-savvy demographics.

Lee announced on his official Facebook page that he would introduce virtual asset spot ETFs and establish an integrated monitoring system to protect investors. He also promised to reduce transaction fees, making digital asset trading more accessible to young Koreans looking to build wealth. Kim Moon-soo, on the other hand, embedded the launch of virtual asset ETFs into his “Middle Class Asset Increase Project,” a key component of his campaign. His pledge seeks to broaden the investment options for the middle class by legitimizing institutional access to the crypto market.

This policy convergence among the top candidates reflects not just domestic investor demands but also global momentum. With the U.S. aggressively advancing its digital asset framework, South Korean leaders appear eager to modernize financial regulations and avoid falling behind. As the local virtual asset investor base continues to grow, South Korea’s political establishment is finally responding. If any of these candidates follow through post-election, the nation could see a policy overhaul—one that opens the door to Bitcoin ETFs and institutional investment, transforming Korea from a retail-driven market to a global crypto hub.

Adding to this momentum, the Democratic Party unveiled a Digital Asset Committee on May 13, vowing to pull crypto regulation straight into the next president’s office. The committee, formed under the party’s election campaign arm, held its first meeting at the National Assembly Members’ Hall in Seoul. The initiative comes as digital assets emerge as a key issue in the upcoming presidential election. The committee will play a central role in drafting pledges, driving legislation, and building frameworks for digital assets, with early discussions focused on the Basic Digital Asset Act, known as the “Stage 2 Bill.”

This policy shift is significant as it indicates a growing recognition of the importance of digital assets in the financial landscape. The support from all three major candidates for Bitcoin ETFs and institutional investment signals a potential transformation in South Korea’s approach to cryptocurrencies. If implemented, these policies could attract more institutional investors, increase liquidity, and stabilize the market, ultimately positioning South Korea as a leading player in the global crypto industry.