South Korea’s newly elected crypto-friendly President Lee Jae-myung met with his cabinet a day after taking office to address the country’s sluggish economy and household financial strain.
The meeting outlined urgent economic reforms aimed at supporting low-income families and small businesses. Lee promised swift actions to boost growth and ease everyday burdens.
Supporting Low-Income Families and Small Businesses
Lee pledged targeted measures to provide relief for struggling households. He highlighted plans to improve social welfare programs and expand financial aid.
Small businesses, many of which have faced declining sales and rising costs, will receive new support packages. Grants and low-interest loans are set to help local merchants cope with expensive rents and tight profit margins.
A Big Push for the Crypto Industry
In a notable shift, President Lee vowed to strengthen South Korea’s domestic cryptocurrency sector. He announced intentions to legalise spot crypto ETFs, currently banned under existing rules.
He also plans to introduce a won-backed stablecoin market to stabilise digital transactions. These steps aim to bring the local crypto market in line with global trends and attract new investment.
Advancing Digital Asset Legislation
Lee said he will complete the second phase of South Korea’s digital asset legislation, focusing on stablecoin regulation and boosting transparency at exchanges.
The Digital Asset Basic Act, which stalled under the previous administration, is set to move forward under Lee’s leadership. Specific rules will target consumer protection and clear guidelines for crypto businesses.
Building on Past Efforts
The new president plans to advance initiatives that the Democratic Party’s Digital Asset Committee began.
By refining those earlier plans, Lee intends to create a comprehensive legal framework for digital assets. He hopes to achieve what his predecessor could not and lay a clear path for future blockchain innovations.
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To foster local growth, Lee aims to ease rules in blockchain innovation zones. These zones are special areas where companies can pilot new technologies with fewer regulatory hurdles.
By reducing red tape, the government hopes to speed up research and attract startups. This move could lead to more jobs and faster adoption of new digital services.
Institutional Onboarding and National Pension Investments
Even before Lee’s cabinet meeting, the Financial Services Commission had begun a phased plan to let institutional players enter the crypto market.
Under Lee’s presidency, the National Pension Service is set to gain permission to invest in digital assets. This landmark decision could open the door for pension funds to explore new investment channels.
Opposition Party’s Digital Economy Framework
Meanwhile, the conservative People Power Party has proposed a broad legislative framework to nurture South Korea’s digital economy.
Their plan focuses on building infrastructure for data security, artificial intelligence, and next-generation networks. While the new administration has its strategy, the opposition’s ideas may influence collaborative efforts in parliament.
President Lee Jae-myung’s swift cabinet meeting signalled a clear shift toward urgent economic reforms and a more open approach to digital assets.
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