Bitcoin (BTC) Trades at 1.31% Kimchi Premium on South Korean Exchanges
Key Takeaways
- •Bitcoin traded 1.31% higher on South Korea's four largest exchanges—Upbit, Bithumb, Coinone, and Digitax—than on Binance at 09:30 UTC on Sunday, averaging 112.97 million won.
- •The kimchi premium measures the percentage gap between cryptocurrency prices on South Korean exchanges and global platforms, and it persists because capital controls restrict the cross-border arbitrage that would align prices.
- •The metric is widely used to gauge retail demand in South Korea, one of the world's most active crypto markets, where the won is frequently among the most-used fiat currencies for crypto purchases.
- •Premium readings have been historically volatile, at times exceeding 50% during the 2017–2018 rally and prompting warnings from South Korean authorities, while Bitcoin has also traded at a discount during periods of subdued local demand.
- •The 1.31% reading is modest by historical standards and is compiled daily by averaging Bitcoin's price across the country's largest exchanges against Binance's price at a fixed hour, so future readings will show whether the gap widens, narrows, or turns negative.
Bitcoin (BTC) Trades at 1.31% Kimchi Premium on South Korean Exchanges
Bitcoin (BTC) was priced 1.31% higher on South Korea's four largest crypto exchanges than on Binance at 09:30 UTC on Sunday, according to the latest daily reading of the country's kimchi premium.
At 6:30 p.m. Korea time, the asset averaged 112.97 million won across Upbit, Bithumb, Coinone and Digitax. The figure reflects the gap between the Korean won-denominated price and the value quoted on Binance, one of the world's largest cryptocurrency exchanges by trading volume.
What the Kimchi Premium Measures
The kimchi premium refers to the percentage gap between cryptocurrency prices quoted on South Korean exchanges and those on global platforms. The spread persists because the country's capital controls restrict cross-border fund flows, limiting the arbitrage trading that would otherwise align domestic prices with international ones.
The metric is widely followed as a gauge of retail demand among South Korean investors, whose market ranks among the most active in global cryptocurrency trading, with the Korean won frequently among the most-used fiat currencies for crypto purchases.
Premium readings have historically been volatile. During the 2017–2018 market rally, the premium at times climbed above 50%, prompting warnings from South Korean authorities. At other points in the market cycle, Bitcoin has traded at a discount on Korean exchanges amid subdued local demand.
A 1.31% reading represents a relatively modest spread by historical standards, with Korean quotes tracking global pricing closely rather than diverging as they did in past episodes of intense local demand. Daily readings of the premium are compiled by averaging Bitcoin's price across the country's largest exchanges and comparing it with the corresponding Binance price at a fixed time each day. Because each reading is a single snapshot taken at the same hour, successive figures are directly comparable, and upcoming readings will show whether the gap widens, narrows, or turns to a discount, as it has at other points in the cycle.
This content was first published on COINOTAG: https://en.coinotag.com/bitcoin-kimchi-premium-131-korean-exchanges
