The upcoming South Korean Presidential election is shaping up to be a battleground over cryptocurrency, with the ruling People Power Party recently naming former labor minister Kim Moon-soo as its candidate for the June 3rd election. According to reports from South Korean media outlet Digital Daily, an estimated 16.3 million South Koreans have either previously or currently owned cryptoassets. This data is based on the number of crypto wallets and linked bank accounts held on the nation’s five fiat-trading crypto exchanges as of February this year.
The political landscape in South Korea is now heavily focused on making pledges to boost the growth of the crypto market. Kim Moon-soo caused a stir in late April when he announced plans to allow government agencies such as the National Pension Service (NPS) and the Korea Investment Corporation (KIC) to invest in virtual assets. The NPS is the world’s third-largest pension fund, while the KIC is the nation’s sovereign wealth fund. Kim emphasized the importance of recognizing the existence of virtual assets in the current economic environment and expressed his intention to foster the domestic crypto industry if elected.
Both the People Power Party and its rival, the Democratic Party, have been vocal about their support for cryptocurrency-related policies. The PPP unveiled seven crypto-related policies ahead of the election, including plans to ease banking regulations for crypto exchanges and facilitate corporate purchases of digital assets. Meanwhile, the DP has discussed establishing a national strategic crypto reserve and regulating crypto and security tokens.
While some in the crypto industry have welcomed the parties’ support for market-friendly policies, others remain cautious due to past unfulfilled promises following previous elections. The industry is hopeful that the candidates’ pledges will translate into tangible actions after the election. An official from a major domestic crypto exchange expressed optimism about the potential institutionalization of crypto but stressed the need to see concrete steps taken post-election.
As the South Korean Presidential race heats up, the role of cryptocurrency in shaping the country’s economic future is becoming increasingly significant. With candidates making bold promises to support the crypto industry, voters will be closely watching to see how these pledges are implemented once the new government takes office. Stay tuned for more updates on this evolving story.