> For the complete documentation index, see [llms.txt](https://elysia.gitbook.io/elusd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elysia.gitbook.io/elusd/market-premium/what-is-market-premium.md).

# What is Market Premium?

Market Premium refers to the phenomenon where a given coin trades at a higher price on exchanges within a specific country compared to major offshore exchanges.

In Korea, this has often been referred to as the “**Kimchi Premium**.” The term combines *“Kimchi,”* symbolizing Korea, with *“premium,”* denoting the additional price. It is used to specifically describe the Korean-local price gap versus global markets.

We define Market Premium as:

$$
\text{Exchange Premium(%)} = \frac{P\_{KRW} - P\_{USD}}{P\_{USD}} \times 100
$$

$$
P\_{KRW} = Price \ quoted \ on \  a \ KRW \ denominated \ exchange \ P\_{USD} = Price \ quoted \ on \ a \ major \ USD \ based \ exchange
$$