Bitcoin, Kimchi Premium Nears 2%... "Korean Market Buying at a Higher Price Has Returned"

▲ Bitcoin (BTC), Korea/AI-generated image

As Bitcoin (BTC) surpassed the $80,000 mark, the Bitcoin premium in the Korean market surged to approximately 2%. This marks the first time since the market shock just before the war that the Korean premium, commonly known as the 'Kimchi Premium,' has neared 2%, indicating that the demand gap between the global market and the Korean spot market is widening again.

Bitcoin.com reported on May 10 (local time), citing CryptoQuant's Korea Premium Index (KPI), that Bitcoin prices on Korean exchanges traded higher than the global volume-weighted average price. This index recorded 1.98% on May 7, coinciding with the time Bitcoin surpassed the $80,000 mark on Korean exchanges.

The Korea Premium is an indicator that shows the difference between domestic demand and global market prices. Bitcoin.com explained that the Korean cryptocurrency market is segmented from the global market due to strict capital controls and resident-based Know Your Customer (KYC) requirements. Because of this, relative changes in demand in the Korean spot market can appear as a premium or discount different from the global average price.

In 2025, Bitcoin mostly traded at a premium according to CryptoQuant's Korea Premium Index. With a few brief exceptions, Korean market prices were higher than global prices, and in October, the premium rose to 8.27% immediately after Bitcoin surpassed its all-time high of over $126,000. However, the trend in 2026 was different.

Bitcoin.com reported that in 2026, after the outbreak of the Middle East war, the Korea Premium fluctuated significantly. In January, Bitcoin traded at over 4% higher prices on Korean exchanges such as Bithumb and Upbit. However, the trend, which maintained a slight premium even a few days after the war began, plummeted to a 2.27% discount in the first week of March, and market conditions have remained highly uneven since then.

By late March, a clear discount accounted for a significant portion of trading activity. On March 27 and 28, the premium recovered by about 1 percentage point but then receded again. In April, there were some periods of decline, but the premium was generally maintained, and on May 7, the premium on Korean Bitcoin prices rose to 1.98%, reaching its highest level since just before the war.

Bitcoin.com analyzed that the volatility in the Korean market is a result of the intertwined Middle East instability and the artificial intelligence (AI) hardware cycle. The Korean stock market, especially the KOSPI, experienced significant volatility during the war, and since May, demand for AI hardware, centered around companies like Samsung Electronics and SK Hynix, has been influencing market trends. As of May 9, the Korea Premium Index has decreased to a 0.77% premium when comparing Upbit's price to the current volume-weighted average price. The Korean cryptocurrency market remains a real-time indicator of how quickly regional demand can diverge from the global market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*