Cryptocurrencies in South Korean exchanges commonly trade at a premium compared to global exchanges, due to a closed market environment. While this may ostensibly present an arbitrage opportunity, experts who spoke to CNBC listed various reasons why this strategy may not be viable. The 'kimchi premium' refers to the price gap in cryptocurrencies, especially bitcoin, when listed in South Korea versus those listed in U.S. or European exchanges.
As bitcoin tested new highs, the kimchi premium also soared