South Korea’s Kimchi Premium Reaches a 10-month High

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The kimchi premium for Bitcoin in South Korea reached its highest level in 10 months as the price on local exchanges remained stable amidst a larger crypto market decline. Per data from CryptoQuant, the premium reached 9.7% around 2 a.m. on Monday in South Korea, its highest point since April 14, 2024, when it surpassed 13%.

It has decreased to 8.24%. Kimchi premium is the percentage difference in price between South Korean exchanges and other exchanges, with the former showing a higher value. This is due to South Korea’s strict restrictions on foreign investment in the crypto market, leading to local investors purchasing large amounts of crypto from foreign exchanges for arbitrage.

According to Presto Research Analyst Min Jung, the kimchi premium is typically seen during bullish market trends when Korean investors bid at higher prices, but it can also surge during periods of panic selling.

This is because the selling pressure on Korean exchanges is lower compared to global markets. The spike in the kimchi premium this weekend can be attributed to US President Donald Trump’s announcement of tariffs on imported goods from Canada, Mexico, and China. This has caused concern among investors about a potential trade war and how it could impact US inflation.