Lee Jae-myung’s 2025 Presidential Crypto Pledges, Including Tax Proposals

Lee Jae-myung’s 2025 Presidential Crypto Pledges, Including Tax Proposals

Introduce spot crypto ETFs

Allow spot ETFs backed by major crypto assets such as Bitcoin and Ethereum to be listed and traded on domestic stock exchanges.

Allow financial institutions to hold crypto assets directly to issue ETFs.

Make it easier for retail investors to invest using only a securities account.

Expected effect: Investors could gain exposure without opening a separate wallet or exchange account, while inflows from traditional finance could help stabilize the market.

Reduce trading fees

Work with exchanges and financial institutions to reduce the fees incurred when trading crypto assets.

Provide policy and institutional support for a reasonable fee structure.

Expected effect: Lower costs for investors and improved market liquidity through increased trading.

Build an integrated monitoring system

Introduce a computer system that brings together data from exchanges, financial payment networks and blockchains.

Detect risks such as market overheating, unfair trading and money laundering early so authorities can respond proactively.

Expected effect: Deter illegal and unfair activity and strengthen investor confidence.

Introduce a won-backed stablecoin

Issue stablecoins backed by a specified amount of Korean won held as collateral.

Require issuers to disclose and manage collateral transparently.

Support the use of stablecoins for payments and remittances in the real economy.

Expected effect: Minimize exchange-rate risk, lower payment and remittance costs, and increase transaction speed.

Enact a Digital Asset Basic Act

Define digital assets and their scope in law, including cryptocurrencies, tokenized securities, NFTs and stablecoins.

Provide a basic regulatory framework for issuance, distribution and trading.

Establish investor protections covering disclosure, accounting, audits and verification of rights.

Allow market-led innovation under a principle of minimum necessary regulation.

Expected effect: Reduce regulatory uncertainty and build an industry ecosystem aligned with global standards.

Legalize tokenized securities (STOs)

Create an environment in which traditional securities, including government bonds, artworks and patents, can be tokenized and traded digitally.

Establish disclosure, accounting, auditing and rights-verification requirements equivalent to those for securities.

Lower barriers to entry and support infrastructure to diversify funding options for small businesses and individual entrepreneurs.

Expected effect: Facilitate asset liquidity and expand financing for small businesses and startups.

Split digital asset responsibilities between two bodies: the Financial Services Commission and a presidential Digital Asset Committee

Financial Services Commission: Responsible for managing and supervising digital asset risks.

Presidential Digital Asset Committee: Dedicated to industry development, infrastructure expansion and international cooperation.

Establish a cooperation model between the two bodies to balance the pace of regulation with industry growth.

Expected effect: Consistent industry development policies and strict supervision operating in parallel.

1. Tax proposals
2. Raise the crypto asset deduction limit

Under the original framework, gains from crypto asset transfers are subject to miscellaneous income tax after an annual basic deduction of 2.5 million won.

Lee proposed raising the “crypto asset deduction limit of 5 million won” to “50 million won per year.”

Expected effect: Reduce the tax burden on young and retail investors who trade frequently, leaving them with more funds to invest.

No additional proposal for a separate tax-rate cut

The candidate’s policy platform does not specify a concrete tax-rate adjustment beyond raising the deduction limit.

It does, however, suggest that a principle of “minimum necessary taxation” could be included in the Digital Asset Basic Act, potentially informing detailed tax standards in the future.

Existing tax framework retained, with room for greater government discretion

Under the current crypto tax framework, miscellaneous income tax applies under a Ministry of Economy and Finance notice, at a 20% basic rate plus 2% local income tax.

Beyond the additional deduction limit proposed by Lee, no specific changes to the tax structure have been detailed.

Criticism of the tax pledges

Some media outlets have argued that the proposals lack sufficient detail on crypto taxation beyond raising the basic deduction.

By contrast, the People Power Party’s pledges include changes to the tax system, such as different rates for long-term holdings, creating a distinction between the parties.

Sources

Yonhap News Agency, “[Election pledges] A wave of crypto pledges: Lee Jae-myung and Kim Moon-soo both support allowing spot ETFs” (May 14, 2025)

Yonhap News Agency, “[Election pledges] Consensus grows on spot crypto ETFs and tokenized securities as support for crypto accelerates” (May 28, 2025)

News Tomato, “(Election issue: ‘Crypto assets’ ①) Concerns that digital asset pledges are all talk” (May 22, 2025)

Newstreaming News, “[Choice 2025] Lee Jae-myung’s camp proposes splitting digital asset responsibilities between the Financial Services Commission and a digital asset committee” (May 31, 2025)

News Tomato, “Proposal to raise the crypto asset tax deduction limit” (May 20, 2025)

Other combined media reports, including major financial and tax articles from May 2025