Kimchi Premium
Table of contents
Kimchi Premium refers to the price gap where cryptocurrencies, especially Bitcoin, trade at significantly higher prices on South Korean exchanges compared to global ones. This phenomenon arises from local demand, capital controls, and limited arbitrage opportunities.
Why It Happens
South Korea has strict capital flow regulations, which make it hard for traders to buy cheaper crypto abroad and sell domestically. Combined with high local demand and speculation, this drives prices above global averages.
What It Signals
The Kimchi Premium can reflect market inefficiencies and strong retail sentiment in Korea. It’s also a sign of how regional factors can create pricing anomalies in global crypto markets.