Crypto Investors, 36% of Voters, Shape South Korea's Election

As the June 3 presidential election in South Korea approaches, political candidates are intensifying their efforts to court the country's burgeoning community of cryptocurrency investors. With approximately 16 million crypto investors, constituting 36% of all eligible voters, this group holds significant sway over the election's outcome. The surge in cryptocurrency investment has made it a pivotal issue, with the total market value of Bitcoin in South Korea exceeding 2,600 trillion won, nearly matching the combined value of all KOSPI-listed companies.

Political parties recognize that garnering support from crypto investors can translate into substantial electoral gains. The crypto community has historically shown unity on financial matters, opposing regulations and tax laws that hinder their investments. This transcends traditional political divides, as investors prioritize policies that impact their financial interests. Consequently, all political candidates are proposing legislative measures to support the virtual asset sector.

The Democratic Party of Korea has bolstered its campaign by appointing Professor Kim Yong-jin as its digital finance expert. Kim advocates for the STO approach to digital finance growth and has introduced the Basic Digital Asset Act, which addresses stablecoins and aims to protect investors better. Lee Jae-myung, the Democratic Party's presidential candidate, has pledged to enact laws regulating virtual assets, citing the need for legislative solutions to accelerate the development of South Korea's crypto market.

Meanwhile, the People Power Party, led by presidential candidate Kim Moon-soo, has outlined seven primary objectives regarding virtual assets. These include removing bank exchange restrictions, enabling multiple institutions to participate in cryptocurrency trade, and establishing crypto ETFs. Kim Moon-soo advocates for crypto investment opportunities for government institutions, including the National Pension Service, and supports free trade permissions for financial institutions in virtual asset transactions. Lee Jun-seok of the New Reform Party emphasizes the need to ease regulatory barriers to support the blockchain industry, believing that such moves would help the market expand and position South Korea as a digital finance leader.

Despite the varied crypto policies endorsed by the candidates, it remains uncertain which direction investors will lean during the election. The upcoming vote underscores the growing influence of cryptocurrencies in South Korean politics, making it a key issue for all contenders.