Political Turmoil in South Korea Pushes Bitcoin Kimchi Premium to New Heights

The South Korean won has hit its lowest point against the U.S. dollar since March 2009, prompting a significant price difference for Bitcoin (BTC) in the country. South Korean investors are now paying 3% more to purchase Bitcoin compared to their American counterparts, according to data from CryptoQuant.

On Upbit, the largest cryptocurrency exchange in South Korea, Bitcoin is listed at 145,000,000 won ($98,600), while on Coinbase, it is priced at approximately $96,700. This price increase coincides with the South Korean parliament’s decision to impeach Prime Minister Han Duck-soo, just weeks after the impeachment of President Yoon Suk Yeol. As a result, the won fell to a 15-year low against the dollar.

In a post on X, Jeff Park, head of alpha strategies at Bitwise, explained, “This unfolding situation revolves around election fraud and the loss of confidence in South Korea’s National Election Commission (NEC). The use of impeachment for political purposes, coupled with allegations of foreign interference in the elections, reveals the vulnerability of democracies to disinformation. This isn’t only a problem for Korea—it’s a global warning for all democracies.”