Kimchi Premium, a reference to inflated prices of cryptocurrencies in South Korea, has been one of the striking features of the exchanges that operate in the country. As global markets matured, this premium slowly diminished. But today the Kimchi premiums reappeared in Korean exchanges, placing Bitcoin mysteriously, USD 40 higher than what it traded elsewhere in the world.
The reappearance of Kimchi Premium a mystery
According to the recent reports published in TrustNodes, Bitcoin was trading at ~$40 premium on South Korean exchanges, Bitfinex and Binance, compared to Coinbase and other exchanges when previously they were at roughly the same price. The reappearance of this premium has taken everyone by surprise as the reason still remains unclear why this divergence in price happened.