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The latest data reveals that the premium on bitcoin in South Korea has escalated to its highest level in more than two years. At 7:30 a.m. Eastern Time (ET) on Thursday, the weighted global average price for bitcoin hovers between $66,800 and $67,000, whereas on the South Korean exchange Upbit, bitcoin’s price stands at $71,076 per unit.
At this moment, the price of a bitcoin (BTC) in South Korea surpasses the weighted global exchange rate, as seen on cryptocurrency price aggregation sites like coinmarketcap.com and coingecko.com, by over $4,000. Data from cryptoquant.com shows that the premium in South Korea has hit a two-year peak. Other South Korean exchanges witnessing this premium include Bithumb, Korbit, and Coinone.
Upbit has seen a staggering $8.2 billion in global trade volume over the last 24 hours, while Bithumb has reported $1.73 billion. The ‘Kimchi Premium’ in South Korea, often viewed as a bullish sign, indicates heightened purchasing activity within the Korean market and a strong interest in digital currencies. Historically, the Kimchi Premium has surged to 50% during bitcoin’s significant bull run in late 2017.
Persisting over time due to market inefficiencies and stringent capital controls within South Korea, this price variance creates arbitrage opportunities for traders who can navigate both markets—buying BTC globally and selling it in Korea for a profit in Korean won. Yet, executing such trades is extremely challenging. Current statistics place the Korean won as the fifth most traded pair by volume and second only to the U.S. dollar in fiat currencies.
While the weighted global average sees ethereum (ETH) trading at just below $3,800 per coin, in South Korea, ETH is priced at $4,029. Additionally, several leading cryptocurrencies, including DOGE and SOL, also carry premiums. Despite the hurdles in leveraging these price differences, the premium in South Korea continues to be a distinctive aspect of the cryptocurrency landscape both domestically and internationally.
