1. What is the kimchi premium?
The kimchi premium occurs when cryptocurrency trades at a higher price on Korean exchanges than on overseas exchanges. The source attributes it to strong Korean investor interest and the segmented structure of the won market.
💡 Example
Binance BTC price: $68,000, approximately ₩91 million.
Upbit BTC price: ₩95 million.
Kimchi premium: +4.4%.
2. Why it occurs
- Excess demand: High cryptocurrency participation among Korean investors.
- Capital controls: Restrictions on freely moving between won and dollars.
- A segmented market: Restrictions on foreigners using Korean exchanges.
- FOMO: The premium tends to rise during bull markets in this account.
3. Reverse premium
A reverse premium means Korean exchange prices are lower than overseas prices. The source associates it mainly with market panic or large-scale selling by Korean investors.
📊 The guide's interpretation
Premium of 5% or more: Overheating; a time for caution.
Premium of 1–3%: A normal level, described here as a healthy market.
A reverse premium: Extreme fear and a possible buying opportunity.
4. Where to check it
- CryptoQuant: Real-time kimchi-premium charts.
- Kimpna, kimp.ga: Real-time premium comparisons.
- Calculate it: (Upbit won price ÷ exchange rate ÷ Binance dollar price − 1) × 100.
5. The premium and AI trading
The source describes NOONOO TRADING as trading USDT-based overseas futures, avoiding direct exposure to the Korean price premium and executing against global prices.
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