South Korea’s Democratic Party Unveils Local Election Pledges Including Digital Asset Law, Spot ETFs

South Korea’s Democratic Party has released a policy platform ahead of the June 3 local elections that outlines measures to foster the digital-asset industry.

In its policy pledge book for the ninth nationwide local elections, published on May 26, the party set a goal of turning South Korea into a “digital asset hub.” Its main initiatives include establishing a regulatory framework for stablecoins and pursuing the introduction of spot exchange-traded funds tied to digital assets.

The party said it would swiftly put in place rules governing the issuance and distribution of stablecoins, along with protections for users. Stablecoins are digital assets designed to minimize price volatility by being pegged to fiat currencies or tangible assets.

It also pledged to pursue a Digital Asset Basic Act and draw up a national innovation roadmap to support the industry.

The platform includes plans to institutionalize financial products linked to digital assets. The party said it would push to introduce spot ETFs based on digital assets and promote the issuance and distribution of tokenized securities, or STOs, that can use smart contracts.

The pledges also include steps to strengthen the competitiveness of the blockchain industry. The party said it would create conditions for freer testing of innovative digital-asset services by expanding private-sector pilot projects and streamlining regulations. It also pledged to improve the effectiveness of blockchain special zones and expand regional infrastructure to support business growth.