South Korea's New President Will Bolster Crypto, But Scandals Prevail
President Lee Jae-myung rose from being a child laborer in post-war South Korea to becoming a crypto-friendly leader of one of the world’s largest digital asset markets. His administration is expected to accelerate the integration of digital assets into Korea's regulatory and financial systems on the back of the Democratic Party's Digital Asset Committee.
Lee's rise to South Korea's highest office marks the return of a left-leaning populist with deep working-class roots and bold plans for institutional crypto integration. Though crypto was not directly mentioned in Lee's inauguration speech on June 4 after the impeachment of his predecessor, Yoon Suk Yeol, Lee now leads the country with a list of crypto promises made during his campaign.
His administration is expected to oversee major crypto policy changes in South Korea, including the likely enactment of the Digital Asset Basic Act (DABA). The progress began under Yoon, who campaigned on it but couldn’t see it to fruition due to his premature dismissal. Recently, the Democratic Party formed a Digital Asset Committee led by lawmaker Min Byoung-dug, who is aiming to pass DABA through the National Assembly this year.
Min said in a recent local media interview that the bill will propose a legally recognized self-regulatory body, a stablecoin approval system and clearer rules for crypto service providers. Lee also championed approving spot crypto exchange-traded funds (ETFs), which are currently banned under existing law, and allowing the National Pension Service to invest in digital assets.
Regulatory green light: For South Korea's crypto industry, Lee Jae-myung's presidency is a long-awaited regulatory green light, signaling legitimacy, fewer bottlenecks and a move beyond a compliance-first culture toward deeper integration with traditional finance. Initiatives like spot crypto ETFs, pension fund exposure and a won-based stablecoin all point to one of the world’s most active retail crypto markets accelerating efforts to onboard the institutional sector that has long remained on the sidelines.
However, Lee's presidency is also marked by ongoing legal battles, with five major cases still ongoing. Election law violation: The Supreme Court ruled that Lee made false statements during his 2022 presidential campaign. Corruption charges: Prosecutors allege that during his tenure as Seongnam City mayor, Lee colluded with private developers in a property project, resulting in profits but losses for the city.
Misuse of public funds: While serving as governor of Gyeonggi Province, Lee was accused of using public funds for personal expenses. Illegal money transfer to North Korea: Lee is alleged to have been complicit in transferring funds to North Korea in 2018, violating multiple laws, including the Foreign Exchange Transactions Act and the Inter-Korean Exchange and Cooperation Act.
Subornation of perjury: Lee is accused of inducing a witness to provide false testimony in a 2019 trial. Although a lower court acquitted him, prosecutors appealed, and the case is currently before the Seoul High Court.
A Complex Legacy
The trials will proceed as scheduled or not, it remains unclear. A key legal question is whether Article 84 of the Constitution — which grants the president immunity from criminal prosecution — also applies to trials that were already underway before the election. Since this is the first time a South Korean president has taken office while already facing criminal charges, legal experts remain divided.
A Long-Awaited Regulatory Green Light
For South Korea's crypto industry, Lee Jae-myung's presidency is a long-awaited regulatory green light, signaling legitimacy, fewer bottlenecks and a move beyond a compliance-first culture toward deeper integration with traditional finance. Initiatives like spot crypto ETFs, pension fund exposure and a won-based stablecoin all point to one of the world’s most active retail crypto markets accelerating efforts to onboard the institutional sector that has long remained on the sidelines.
A Populist Leader With A Polarizing Style
Lee's political rise has been shadowed by a series of legal battles, with five major cases still ongoing. Election law violation: The Supreme Court ruled that Lee made false statements during his 2022 presidential campaign. Corruption charges: Prosecutors allege that during his tenure as Seongnam City mayor, Lee colluded with private developers in a property project, resulting in profits but losses for the city.
Misuse of public funds: While serving as governor of Gyeonggi Province, Lee was accused of using public funds for personal expenses. Illegal money transfer to North Korea: Lee is alleged to have been complicit in transferring funds to North Korea in 2018, violating multiple laws, including the Foreign Exchange Transactions Act and the Inter-Korean Exchange and Cooperation Act.
A Complex Legacy
The trials will proceed as scheduled or not, it remains unclear. A key legal question is whether Article 84 of the Constitution — which grants the president immunity from criminal prosecution — also applies to trials that were already underway before the election. Since this is the first time a South Korean president has taken office while already facing criminal charges, legal experts remain divided.