Kimchi premium
The gap when crypto trades at a higher price on South Korean exchanges than elsewhere.
In plain English
The gap when crypto trades at a higher price on South Korean exchanges than elsewhere.
South Korea has strict controls on moving money in and out, so when local demand for coins surges, Korean exchange prices can float above the global price. That gap is the kimchi premium.
On paper it's free money: buy abroad, sell in Korea. In practice capital controls block the round trip, which is exactly why the gap can survive. Traders watch it as a gauge of retail mania.
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