South Korean Presidential Candidate Pushes for Pension Fund Bitcoin Exposure—Because Nothing Says ’Retirement Security’ Like Volatile Crypto
A contender for South Korea’s presidency is making waves with a bold proposal: allowing the national pension fund to allocate funds to Bitcoin. The move—seen as either visionary or reckless—highlights the growing institutional flirtation with crypto assets.
Why it matters: With over $800 billion in assets, the National Pension Service (NPS) could become one of the world’s largest BTC holders overnight—if regulators don’t torpedo the idea first.
The fine print: This isn’t just moon math. The candidate’s team claims strict risk management frameworks would apply—because when has that ever failed in crypto markets?
Wall Street’s watching: Traditional finance types are either scoffing at the ’speculative gamble’ or quietly updating their own crypto investment theses. Pension funds dipping into digital assets? That’s a 2025-level plot twist.
South Korean Presidential Elections: Crypto a Key Battleground
The media outlet noted that the South Korean political world is now “putting considerable effort” into making pledges about ways to boost crypto market growth.
In late April, Kim caused a storm in the crypto community. The candidate said he would “allow government agencies such as the National Pension Service (NPS) and the Korea Investment Corporation (KIC) to invest in virtual assets.”
The NPS is the world’s third-largest pension fund. The KIC is the nation’s sovereign wealth fund.
The media outlet noted that, should the NPS and the KIC start directly investing in BTC and other cryptoassets, the move would “further enhance the crypto market’s reputation.” On April 27, Kim said:
“Considering the changes in the domestic and international economic environment, we can no longer deny the existence of virtual assets.”
The former labor minister said that he would “foster” the “important” domestic crypto industry if he wins power on June 3.
Democratic Party (DP) presidential candidate Lee Jae-myung appealed for support during a visit to Yeongju, North Gyeongsang, on Sunday, asking, “What did I do so wrong?” https://t.co/YF27ZsVGkG
— The Korea JoongAng Daily (@JoongAngDaily) May 4, 2025Kim told attendees at the People Power Party convention in KINTEX in Goyang on May 3:
“Many young people make money with virtual assets. But some young people lose money on their purchases. I will try to make the market more stable by institutionalizing it.”
Rival Party Also ‘Crypto-keen’
The PPP and its biggest rival, the Democratic Party, have also talked up the possible approval of Bitcoin exchange-traded funds ETFs.
Late last month, the PPP unveiled seven crypto-related policies ahead of June 3’s poll. The party says it will move to scrap restrictive banking rules for crypto exchanges.
It has also promised to speed up the process of allowing corporations to buy BTC and other coins with their balance sheets.
Kim Moon-soo, a former labor minister and a candidate for the presidential nomination of the People Power Party, promised to extend the Great Train eXpress (GTX) railway network to five metropolitan areas within his term as president, if elected.https://t.co/ZBWpUwkMqK
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) April 21, 2025The DP has also unveiled its own set of crypto policies. Some senior party officials claim they want to establish a national strategic crypto reserve.
Both parties have claimed that they will institutionalize crypto and security tokens if they are elected.
DP candidate Lee Jae-myung has said relatively little on crypto-related matters in the run-up to the June poll.
But other DP officials, including many close to Lee, have spoken publicly about plans to launch a new crypto regulator. Some also want to let domestic firms issue stablecoins.
Mixed Opinions on Manifesto Promises
South Korean crypto insiders have reacted to the pledges with a mixture of caution and optimism.
The same media outlet wrote that the industry was “greatly encouraged” by the parties’ “unanimous” support for market-friendly polices.
South Korea’s conservatives pick hardline Kim Moon-soo as presidential candidate https://t.co/AhdzBkNbbu https://t.co/AhdzBkNbbu
— Reuters (@Reuters) May 3, 2025However, some will recall that candidates made similar pledges in the lead-up to the 2022 and 2024 elections.
Following the polls, however, only a small fraction of these manifesto promises were later turned into laws.
An unnamed official from a major domestic crypto exchange was quoted as saying:
“Institutionalization plans have been a major disappointment for the industry so far. So in that respect, the candidates’ pledges are a very positive sign. However, we will have to wait and see if these pledges are actually put into action after the election.”
