[Korean Exclusive News]
Author: Shin Yi Jin, South Korea
Case Study Data
Taking the three most popular coins in Korea: Bitcoin, Ethereum and Ripple, the data showing the Kimchi Premium (KIMP) for each coin for a time frame of 1 year is collected from May 2017 to May 2018 for trend analysis.
The high rate of KIMP implies the high demand in Korea. In May 2017, the KIMP recorded the highest value and this was due to a positive prospectus by the Koreans as well as commission charge from the local exchange markets. From May 2017, the KIMP started to drop due to the drop in price of the coins around the world.
The drop continued and reached an average rate of about 3~4% until October 2017. In December 2017, the KIMP hit high again with the opening of futures trading for Bitcoin and other coins in CME. Korean government imposed regulations such as real-name transaction law and began to contol the KIMP, leading to its trend of decline.
The KIMP seemed to have been eliminated until recently (May 2018) when it’s showing a rising trend again due to a mass entering of local investors into the market with increasing number of Korean major companies focusing on building of blockchain platforms. However, the KIMP has reached a stable average of 1~3% today (21 May) possibly due to the ongoing investigations of the largest local exchange market, Upbit.
For the next few months, the KIMP trend is expected to follow the result of the investigations on the credibility of Upbit which would affect the credibility of other local exchange markets as well.