South Korea has long been known for its fervent passion for cryptocurrencies, with the term "Kimchi Premium" emerging to describe the higher prices Korean traders would pay for Bitcoin compared to global markets. However, 2025 marks a noticeable shift in this trend.
Trading volume on Upbit, South Korea's largest cryptocurrency exchange, has plummeted by 80% compared to last year. In contrast, the Korean stock market is experiencing a strong rebound, with the KOSPI index rising by over 70% this year, reaching new record highs.
Several factors contribute to this shift:
It is unclear whether this shift is permanent. However, it is clear that the cryptocurrency market in South Korea faces significant challenges. Exchanges and crypto projects will need to find new ways to attract Korean investors if they want to remain relevant.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
