As South Korea approaches its highly anticipated June 3 general election, cryptocurrency has taken center stage in political campaigns. With an estimated 16 million cryptocurrency investors, representing 36% of the nation’s voting population, presidential candidates are rolling out crypto-centric policy platforms to win over this influential demographic.
Crypto Voters Hold Growing Political Power
According to a report by Point Daily, the political clout of crypto holders has surged alongside market capitalization. South Korea’s crypto market is now worth over 2,600 trillion won, rivaling the total market cap of all KOSPI-listed companies. In context, the 16 million crypto investors represent a substantial segment of the 44.25 million eligible voters from the previous general election.
This rapid growth has pushed major parties to tailor their campaigns specifically toward digital asset investors.
Democratic Party Targets Regulation and Tokenization
The Democratic Party has taken a policy-heavy approach, bringing in Professor Kim Yong-jin of Sogang University, a well-known expert on token securities, to shape their crypto platform. Representative Min Byeong-deok has also introduced a draft Basic Digital Asset Act, which would implement a stablecoin authorization system and seek to more clearly integrate digital assets with the financial system.
People Power Party Offers Bold Reforms
The People Power Party, whose candidate will be confirmed on June 3, has presented a seven-point crypto initiative. These proposals include:
- Abolishing the restrictive one-exchange-one-bank policy
- Legalizing spot crypto ETFs for trading within the year
- Allowing corporate participation in virtual asset trading
- Positioning South Korea as a global crypto hub
Presidential hopeful Kim Moon-soo has made a direct appeal to crypto investors, saying:
“About 16 million people, or one-third of the population, are participating in the virtual asset market, but virtual asset investors are being left without even the minimum protection measures.”
Regulatory Developments Gain Steam
Separately, Joseilbo reported that the Financial Services Commission (FSC) is advancing regulatory reforms. Starting in June, non-profit organizations and exchanges will be allowed to sell virtual assets provided they implement internal review systems and enhance anti-money laundering (AML) measures.
These regulatory updates signal the government’s growing intent to balance consumer protection with innovation, especially amid rising investor activity.
A Defining Election for South Korea’s Crypto Future
With digital assets becoming a mainstream financial tool in South Korea, the upcoming election could shape the nation’s long-term crypto policies. As parties compete for the support of this massive and mobilized investor base, the intersection of politics and crypto may redefine not just financial regulation, but electoral strategy itself.
