Why crypto is on the ballot
The asset’s prominence in the election is unsurprising, given that nearly one in three Koreans own digital assets, including a large share of older, wealthy investors.
It’s more than just a youth-focused strategy—crypto’s influence spans across multiple demographics.
Sangmin Seo, a South Korean technologist who leads the Kaia DLT Foundation (Kaia is a high-performance public blockchain), has said,
“This election, Korean politics sees crypto as a narrative to gain voters’ favors, positioning it as another national growth engine besides AI and semiconductors.”
He added,
“There is widespread support for the idea that the Korean crypto industry cannot lose its competitiveness on the global stage. Both sides of politics feel the urgency to catch up with regulatory advancements in other countries.”
What they agree on and where they don’t
Candidates from both the Democratic Party and the People Power Party share common ground on key crypto issues.
Both support ETFs and recognize the need for stronger regulations, a process already in motion.
However, their approaches to stablecoin policy differ. While both agree on improving oversight, each party has its interpretation of risk management and consumer protections.
The Democratic Party tends to emphasize consumer safeguards, prioritizing risk mitigation to prevent collapses like Terra’s downfall.
Their approach leans toward proactive regulation, ensuring stablecoin reserves are auditable and backed by reliable assets.
While the People Power Party favors a more market-driven framework, focusing on innovation and competition, while still recognizing the need for oversight.
Their stance often involves self-regulation mechanisms, giving issuers more flexibility but with stricter crisis management requirements.
Why the region is watching
Regardless of the election’s outcome, crypto is set to benefit. High adoption rates and strong political backing position South Korea as a potential regional leader in digital asset regulation.
As a technological powerhouse with influence across Asia-Pacific, South Korea’s crypto policy decisions could shape trends in neighboring markets.
Clear regulations and positive policy moves may serve as a blueprint for other countries to follow.
