Reading the Kimchi Premium: When It Is High, When It Is Low, and Its Limits

• List
• Report

The kimchi premium is a reference indicator that shows the gap between Korean and overseas prices. Before judging by the number alone, keep the points below in mind.

When it is positive (Korea is more expensive)

• It means the same coin is trading higher on Korean exchanges than overseas.
• It is generally known to grow when buying demand in Korea surges or when moving money abroad is restricted.
• A coin bought in Korea while the premium is high can be worth less in won when the premium shrinks, even if the overseas price stays the same.

When it is negative (Korea is cheaper, a reverse premium)

• The Korean price is below the converted overseas price.
• It sometimes appears when the market mood has cooled. The cause differs each time, though, so one number cannot tell you for sure.

Things to watch when reading the number

• The value depends on the basis. The USD/KRW exchange rate basis and the Tether (USDT) basis show different values. On CoinGaja you can switch between the two.
• Each exchange is a little different. Even for the same coin, Upbit, Bithumb, Coinone and Digital X (formerly Korbit) prices differ. CoinGaja's coin list uses the median of the Korean exchange prices.
• Live values have a delay. Depending on exchange server response times and how often the exchange rate is updated, they can differ from actual trade prices. When a price is stale or abnormal, CoinGaja shows - instead of a number.
• Coins with low trading volume swing more. For coins with thin order books, the premium can change a lot in a short time.
• A price gap is not the same as profit. Transfer time, fees, currency exchange costs and various rules and limits all have to be considered, and prices can move again in the meantime.

How to use it

• Use it as a signal to look for the reason when a coin's premium is very different from usual.
• If you want to be notified when it reaches a certain level, try kimchi premium alerts (Telegram).
• To compare all coins at a glance, the kimchi premium list of all coins is handy.

※ This post and all price and kimchi premium information on CoinGaja are for reference only and do not recommend buying or selling any coin. Investment decisions and their results are the user's own responsibility.