• 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.
A bowl of kimchi, a fermented vegetable side dish that is a staple in all Korean meals

You may have heard of the "Korea discount" in South Korea's stock markets. Now, get ready for the "kimchi premium," named after the popular side dish of fermented vegetables that's a staple in Korean cuisine.

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.