Regulatory Measures Reduce South Korea's Bitcoin Premium to 0.87%

As of September 25, the Kimchi Premium—the gap between Bitcoin prices in South Korea and those on international

exchanges—was recorded at 0.87%, based on the latest figures from Korean trading platforms How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ]. This figure is determined by comparing local exchange prices, such as those on Upbit, with global leaders like Binance and , and highlights the ongoing effects of South Korea’s regulatory policies and capital movement restrictions. After dropping to just 0.12% on September 21 Bitcoin Shows 0.12% Kimchi Premium in Korean Market on … [ 2 ], the premium continues to reflect the complex relationship between domestic demand, government regulations, and the integration with global markets.

The Kimchi Premium has seen significant volatility over time, reaching as high as 55% in 2017 and even turning negative—by as much as 3-5%—in late 2024 How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ]. These fluctuations are influenced by factors such as South Korea’s stringent capital controls, which restrict arbitrage, and the country’s real-name verification requirements for crypto accounts, making access to local exchanges more difficult How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ]. The introduction of the “travel rule” in 2024, mandating identity checks for crypto transfers above 1 million won, has further complicated international transfers and contributed to price discrepancies How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ].

Recent developments underscore the influence of regulatory changes and broader economic factors. In July 2025, South Korea saw a rare Kimchi Discount, with Bitcoin trading $2,500 lower domestically than on global exchanges, a situation linked to stricter rules under the

Asset User Protection Act and a decline in retail investor interest Bitcoin Is $2,500 Cheaper in South Korea—What the … [ 3 ]. The current 0.87% premium, however, points to a partial rebound, possibly driven by renewed speculative trading and changes in capital regulations. Experts suggest that the introduction of crypto taxes in 2025 and ongoing talks about regulated arbitrage for institutions could further influence the premium’s direction How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ].

The Kimchi Premium acts as a gauge of market mood. When the premium is positive, it often signals strong local demand, speculative enthusiasm, or concerns about the Korean won’s value, while a negative premium may indicate tighter regulations or institutional withdrawals How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ]. For example, the negative premiums seen in late 2024 coincided with large-scale institutional selling and a weakening won, which made buying Bitcoin in Korea more expensive How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ]. In contrast, the current positive premium suggests a stabilization in retail activity, though capital controls remain a limiting factor.

Looking forward, the future of the Kimchi Premium will be shaped by regulatory developments, global economic shifts, and technological progress. The launch of institutional-level derivatives for altcoins like

and on platforms such as CME Group in October 2025 could indirectly impact Bitcoin’s market by changing liquidity flows. Nevertheless, South Korea’s distinctive regulatory landscape, including its capital controls and tax rules, is expected to keep price differences in place for the foreseeable future How to Understand the Kimchi Premium and Its Weird Flip in … [ 1 ].