Is Sending Coins from Abroad to Korea Profitable in a Reverse Premium?

When you look at CoinGaja, you will sometimes see a reverse premium, where Korean coin prices are lower than overseas prices.

For example, if Bitcoin is ₩100 million abroad but trades at ₩98 million in Korea, at first glance selling abroad and buying in Korea looks profitable.

Conversely, it may also feel as if buying a coin abroad and sending it to Korea brings it in cheaply.

But when you actually do the math, it is not as simple as you might think.

Do not send right away based on the reverse premium figure alone

For example, even if the reverse premium is 2%, you do not actually get the full 2%.

That is because various costs and variables come up during the transfer.

Trading fees
Withdrawal fees
Price moves during the transfer
Exchange rate moves
Possible deposit and withdrawal suspension
Travel Rule checks

The price gap can disappear while you transfer

Say you bought a coin abroad because a 2% reverse premium was showing.

If the overseas price falls or the Korean price rises while the coin is on its way to the Korean exchange, the reverse premium can quickly disappear.

Conversely, the reverse premium can also grow.

In other words, the number on screen is only the gap at this moment, not a gap that is guaranteed until you sell.

When deposits and withdrawals are blocked, the price gap can look large

If deposits and withdrawals are suspended on a particular exchange, it becomes hard to move coins between exchanges.

At such times the price gap sometimes widens far more than usual.

The screen may show a 3% gap, but in reality you may not be able to use it because you cannot move the coin.

Check the Travel Rule too when sending from abroad to Korea

Korean exchanges may require Travel Rule checks for crypto deposits and withdrawals above a certain amount.

You need to check whether the overseas exchange you are sending from is properly supported by the Korean exchange.

If you send without checking this, confirmation of the deposit may be delayed, or you may need to provide additional explanation.

When you actually do the math, it is easier to look at it this way

Do not simply look at what percent the reverse premium is; include:

Expected proceeds from selling in Korea
Cost of buying abroad
Trading fees
Withdrawal fees
Exchange rate
Expected transfer time

in your calculation as well.

A 1% reverse premium is not automatically an opportunity

If the amount is small, fees may leave you with almost nothing.

Conversely, if the trade amount is large, even a small price move can wipe out the expected profit.

So when you look at the reverse premium, rather than "how many percent is it?", it is more important to see whether this price gap is likely to last until you actually finish your trade.

Even if CoinGaja shows a large reverse premium, rather than sending right away, it is better to first check the deposit and withdrawal status together with Korean and overseas price moves.