The Bitcoin “kimchi premium” is currently in the spotlight as an escalation of political turmoil in South Korea. Bitcoin’s trading price in South Korea is 3% higher than the global spot price.
The “kimchi premium” refers to the price gap between Bitcoin (BTC) listed in South Korea and those in U.S. or European exchanges.
Bitcoin Kimchi Premium Spikes As Korean Won Plunge
According to crypto data provider Cryptoquant, the Korea Premium Index has increased by 3%. This means South Koreans are paying 3% more to buy Bitcoin than their U.S. counterparts as they seek protection from the plummeting won. The won has slumped to a 15-year low against the dollar.
Currently, Bitcoin is valued at 145,000,000 won, or about $98,600, on Upbit, South Korea’s largest crypto exchange. In contrast, the leading cryptocurrency is valued at about $96,700 on Coinbase, the US’s leading exchange.
It is important to note that Bitcoin prices in South Korea are driven mainly by retail investors since institutional and foreign investors cannot participate freely.
Political Tensions Rise in South Korea
Meanwhile, the 3% spike in the Bitcoin Kimchi Premium follows escalating political tensions in South Korea. The South Korean parliament recently voted to impeach Prime Minister Han Duck-soo and the acting President, only a few weeks after impeaching President Yoon Suk Yeol.
This unfolding drama revolves around election fraud and the erosion of trust in South Korea’s National Election Commission (NEC). A cybersecurity audit conducted last year, led by the National Intelligence Service (NIS), revealed alarming vulnerabilities in the NEC’s systems.
“Every constitutional scholar needs to pay attention to what happens in Korea over the next few weeks,” says Bitwise’s Jeff Park in an X post. He added that the use of impeachment as a political tool and accusations of foreign election meddling highlight the vulnerability of democracy to misinformation.
South Korea’s Crypto Boom
Despite the rising political situation, crypto continues to expand in South Korea.
According to earlier reports, over 30% of its population is now engaged in crypto investments. Between July and November 2024, the total market capitalization rose from 58 trillion won to 102.6 trillion won. South Korean investors now hold an average of 6.58 million won in crypto, reflecting a growing trust in the asset class.
The post Bitcoin Kimchi Premium Surges Amid Political Turmoil in South Korea appeared first on TheCoinrise.com.
