[Bitcoin Now] Korea Is Now Cheaper... "Kimchi Premium" Turns Into "Kimchi Discount"

Reverse Kimchi Premium Persists for Extended Period…
35 Consecutive Days Recorded

Investors Flee to Overseas Exchanges Amid Booming Stock Market

This year, the phenomenon known as the "reverse kimchi premium," where virtual assets are traded more cheaply in Korea than overseas, has continued in the domestic market. Analysts attribute the persistence of this trend to a decline in investment incentives caused by the delay in enacting the Digital Asset Basic Act and the prospect of virtual asset taxation, as well as investors leaving the domestic market for the stock market and overseas virtual asset exchanges.

According to CryptoQuant, an on-chain data platform, as of August 9, the kimchi premium index for Bitcoin has been negative throughout the month. The average value was -0.48. The kimchi premium index represents the percentage price difference between Korea’s five major won-based exchanges (such as Upbit and Bithumb) and overseas exchanges. An average of -0.48 means that Bitcoin was 0.48% cheaper on domestic exchanges compared to their overseas counterparts.

Out of 221 days this year, Bitcoin traded at a reverse kimchi premium for 123 days—exceeding the number of days with a positive kimchi premium. On an annual basis, this is the first year since CryptoQuant began providing related figures in July 2020 that the reverse kimchi premium period has lasted longer than the standard kimchi premium period.

The periods during which the reverse kimchi premium was maintained have also grown longer. From June 20 through July 24 of this year, the reverse kimchi premium persisted for 35 consecutive days. A similar pattern was observed from May 20 to June 18, with 30 straight days. The previous record was 23 days, from July 8 to 30 last year.

The kimchi premium has also been set at lower levels compared to the past. As of June 8, the kimchi premium index recorded -3.70. This indicates a steeper drop in Bitcoin prices than on July 22 last year (-2.02), and December 8, 2024 (-2.07). The highest kimchi premium recorded this year was on January 30, at 4.05. In historical context, previous highs include February 4 last year (7.92) and March 16, 2024 (10.88).

The shift toward reverse kimchi premium has been driven by cooling investor enthusiasm for virtual assets in Korea. Whereas the local market once saw higher investment fervor—causing virtual assets to trade at a premium—Bitcoin is now transforming into a relatively cheap market.