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:

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

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