South Korea’s presidential candidate Kim Moon-soo has stated his support for spot crypto-based Exchange-Traded products (ETFs) and the market’s development ahead of the upcoming elections. This move follows the opposition candidate’s recent promises to create a safe digital assets market for investors while strengthening protections.
PPP’s Presidential Candidate Vows To Allow Crypto ETFs
On Monday, Presidential candidate Kim Moon-soo for the People Power Party (PPP) announced he will allow spot crypto ETFs if he wins the June 3 elections. As part of his list of pledges, Kim promised to push for approval of the digital asset-based investment products and other financial policies to increase the wealth accumulation of the middle class.
According to local news outlets, the presidential candidate for South Korea’s ruling party stated that crypto-related policies are some of the core pledges of his campaign, including fostering a “fair and transparent digital asset market by enacting the ‘Digital Asset Development Act.’”
Kim’s camp reportedly cited the increasing number of digital asset investors in the younger generations as a decisive factor for incorporating spot ETFs and the institutionalization of digital assets into the pledges’ list.
Notably, South Korean experts have urged the government to institutionalize crypto in the country to create “new added value.” In December, Jeong Eun-bo, chairman of the South Korea Stock Exchange, affirmed that financial institutions and lawmakers must change their approach to digital assets.
Jeong noted that the country’s digital assets market needed to be revitalized to compete with other nations and avoid falling behind international markets after failing to cross various regulatory thresholds for years, challenging the Korean market’s development and competitiveness.
Kim’s campaign also vowed to work on tax benefits for long-term stockholders or funds, taxation of dividend income separately, and expansion of tax support for individual comprehensive asset management accounts (ISAs).
This follows the PPP’s recently announced crypto policy proposals to reshape the country’s market. As reported by Bitcoinist, South Korea’s ruling party outlined several new initiatives to lift key restrictions and introduce a legal framework that supports the industry’s development.
Is Spot ETFs’ Approval In South Korea Imminent?
Recently, the candidate for the Democratic Party of Korea (DPK), Lee Jae-myung, also pledged to introduce spot crypto ETFs and lower digital assets transaction taxes in the country. During his Youth pledge, Lee promised to “create a safe virtual asset investment environment by establishing an integrated surveillance system” and “expand the cryptocurrency market while simultaneously strengthening investor protection.”
Since 2017, digital asset-based ETFs have been banned in South Korea, with the country’s watchdog, the Financial Services Commission (FSC), reaffirming its stance after the US Securities and Exchange Commission (SEC) approved the crypto-based investment products last year.
Nonetheless, the financial regulator has since shifted from its stricter regulatory approach, revealing in October 2024 that the newly formed advisory group for discussing digital asset policies would review the ban.
After the DPK’s presidential candidate’s promise, FSC’s Commissioner Kim Byung-hwan suggested that the pledges were “in the same direction” as the South Korean watchdog. Kim revealed that the agency has discussed how to institutionalize the digital asset market “at a certain pace,” adding, “If you look at the contents of the pledges, it’s almost the same direction as our direction.”
Additionally, he noted “there seems to be a slight difference in speed,” concluding that, “when the next government comes in, we will go through a process of coordinating with our thoughts in the process of implementing the pledges.”
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