Lee Jae-myung Promises Spot Crypto ETF in South Korea

Lee Jae-myung, the frontrunner in the upcoming South Korean presidential election, has committed to allowing the introduction of spot bitcoin exchange-traded funds (ETFs) in the country. In a Facebook post, he stated, "I will introduce spot virtual asset ETFs and establish an integrated monitoring system to create a safe virtual asset investment environment." As a candidate from the left-wing Democratic Party of Korea, Lee aims to create more opportunities for the younger generation. His proposals also include a new interest-bearing savings program and financial planning services tailored to South Korea's youth. Lee emphasized that the challenges facing young people are not isolated issues, but rather indicative of a broader structural crisis caused by limited opportunities. He expressed his commitment to facilitating an environment where young people can thrive financially and live without concerns. The presidential election is scheduled for June 3, following the recent impeachment of former President Yoon Suk-yeol from the right-wing party. Lee currently enjoys a support rate of approximately 50%, with a prediction market assessing his chances of victory at 87% based on an $80 million bet placed on the platform Polymarket. At present, South Korea's Financial Services Commission (FSC) has prohibited the local issuance of spot crypto ETFs, having determined there is no legal framework permitting bitcoin or other cryptocurrencies as underlying assets. Kim Moon-soo, the right-wing candidate from the People Power Party, has also expressed intentions to lift the current restrictions on crypto ETFs. In a recent meeting, FSC Chairman Kim Byung-hwan acknowledged the candidates' pledges regarding spot crypto ETFs. He indicated that the agency would engage with the new administration to discuss potential implementation, according to MoneyToday news. Disclaimer: The Block provides news and research independently. As of November 2023, Foresight Ventures is a major investor in The Block and also invests in various crypto companies. Bitget serves as a key LP for Foresight Ventures, and The Block operates independently to deliver objective information about the crypto sector.