Bitcoin’s ‘Kimchi Premium’ Vanishes Again as Trading Range Tightens

The spread between the price of bitcoin on South Korean and U.S.-based crypto exchanges, which returned in June and hit 16-month highs, has disappeared once again.

A measure of how much more South Koreans pay for bitcoin, the spread, known colloquially as the “kimchi premium,” has reached remarkable levels, peaking at 54.48%, according to researchers at the University of Calgary. It then dropped and ultimately vanished, only to return again recently, running at around 5 to 10%.

But last week, local newspapers started to notice that bitcoin was back to trading lower in won terms. The Dong-a Ilbo, one of the country’s major publications, reported on August 5 that bitcoin was priced just 2.15% higher in dollar markets than in won on South Korean exchanges.

The deficit persists. On August 13, bitcoin was trading on Upbit at 13,678,000 won and quoted on CoinDesk at $11,429.14, which translates to 13,931,951 won, a difference of 253,951 ($208). That’s about 1.8%…