South Korea's Kim Moon-soo Proposes 16.3 Million Citizens' Crypto Investment

Kim Moon-soo, the ruling People Power Party’s candidate for the upcoming June 3 election, has proposed a significant shift in South Korea’s approach to cryptocurrencies. Kim, a former labor minister, has stated that if elected, he would allow government agencies such as the National Pension Service (NPS) and the Korea Investment Corporation (KIC) to invest in virtual assets. The NPS is recognized as the world’s third-largest pension fund, while the KIC serves as the nation’s sovereign wealth fund. This move, if implemented, would mark a substantial endorsement of cryptocurrencies by the South Korean government, potentially enhancing the market’s reputation and stability.

Kim’s proposal comes at a time when the South Korean political landscape is increasingly focused on cryptocurrency. According to local media reports, officials estimate that approximately 16.3 million South Koreans either currently own or have previously owned cryptoassets. This significant number underscores the growing interest and involvement of the South Korean public in the cryptocurrency market. Kim has emphasized the importance of fostering the domestic crypto industry, stating that he would work to make the market more stable through institutionalization.

Kim’s stance on cryptocurrencies is not an isolated one within the South Korean political sphere. The Democratic Party, the ruling People Power Party’s main rival, has also expressed support for cryptocurrency-related policies. Both parties have discussed the potential approval of Bitcoin exchange-traded funds (ETFs) and have pledged to institutionalize crypto and security tokens. The Democratic Party has even proposed the establishment of a national strategic crypto reserve, further highlighting the bipartisan interest in integrating cryptocurrencies into the country’s financial landscape.

However, the industry’s reaction to these proposals has been mixed. While some crypto insiders have expressed optimism about the parties’ support for market-friendly policies, others remain cautious. There is a sense of skepticism stemming from past elections, where similar pledges were made but only a small fraction were actually turned into laws. An unnamed official from a major domestic crypto exchange noted that while the candidates’ pledges are a positive sign, the industry will have to wait and see if these promises are put into action after the election.

Kim’s proposal to allow the NPS and KIC to invest in virtual assets represents a bold step towards legitimizing cryptocurrencies in South Korea. If implemented, this move could have far-reaching implications for the global cryptocurrency market, potentially setting a precedent for other countries to follow. The upcoming election will be a critical juncture for the future of cryptocurrencies in South Korea, with both major parties expressing a willingness to embrace this emerging asset class. The outcome of the election will determine whether these proposals remain mere campaign promises or become tangible policies that shape the future of the cryptocurrency landscape in South Korea.