Market News

South Korea's Presidential Candidates Pave the Way for Bitcoin ETFs

In a significant shift in the South Korean political landscape, all three major presidential candidates have embraced the idea of spot Bitcoin exchange-traded funds (ETFs).

This development comes amid a total ban on Bitcoin ETFs and institutional investments, which currently restricts the market to retail investors alone.

Democratic Party candidate Lee Jae-myung and People's Power Party candidate Kim Moon-soo are especially vocal about their intent to legalize Bitcoin ETFs, aiming to attract younger voters.

Lee has pledged to create a safer investment environment and reduce transaction fees to support wealth building among the youth.

On the contrary, experts advise caution, highlighting a history of unmet promises regarding crypto regulation in South Korea.

While the candidates’ pro-crypto positions signal hope for policy change, the country's financial regulators remain wary of potential risks.

In March 2025, both ruling and opposition parties agreed to reconsider the spot ETF ban, which could accelerate the legal process if one of the candidates wins.

Moreover, a Digital Asset Committee has been established within the Democratic Party to explore broader regulatory frameworks for the digital asset sector.

As the June 2025 presidential elections approach, these developments could drastically reshape South Korea's crypto landscape and align it more closely with global trends.

If successful, the legalization of Bitcoin ETFs would mark a crucial step forward for institutional investment in South Korea.