What is the kimchi premium
It is how much higher the same coin trades on Korean exchanges (in won) than on global exchanges (in dollars or USDT). Formula: premium = Upbit KRW price ÷ (Binance USDT price × USD/KRW rate) − 1. Positive means Korea is more expensive (a premium); negative is a discount, often called a reverse premium.
Why it exists
- Buying demand that piles up in Korea, or difficulty moving funds abroad, lifts domestic prices.
- FX, transfer limits, transfer time and fees stop the gap from closing instantly.
- The premium tends to widen when the market is overheated and shrink or flip negative when money leaves.
Reading this page
- Average premium is the mean of the top 5 coins, which filters out single-coin spikes.
- USDT premium is Upbit's USDT price against the FX rate — a gauge of won liquidity crowding in.
- The chart shows 24 hours of the BTC premium (solid) and the average (dashed), recorded by the server every 5 minutes.
Caveats
A premium does not mean easy arbitrage: transfer time, withdrawal and trading fees, currency conversion, limits, regulation and price risk all apply. Values come from public quotes for reference and are not investment advice.
FAQ
What does a negative kimchi premium mean?
Korean prices are below global ones — a reverse premium — which often shows up when funds are leaving Korea.
Which FX rate is used?
The USD/KRW rate from ExchangeRate-API, refreshed hourly. It can differ slightly from the rate an exchange uses.
Why only some coins?
Only high-volume coins listed on both Upbit's KRW market and Binance's USDT market are compared.
Should I buy or sell when the premium is high?
This page does not make that call. Treat the premium as a gauge of market heat only.