South Korea Bitcoin demand rises as Kimchi Premium returns

The ‘Kimchi Premium’ has returned to positive territory in South Korea, indicating a resurgence in local demand for Bitcoin. As of September 1, 2026, Bitcoin prices on Upbit, South Korea’s largest cryptocurrency exchange, were approximately 1% higher than prices on Binance.

This premium has persisted for about a week, marking the longest continuous streak since early May. The indicator is often used to gauge the risk appetite of South Korean retail investors, who are known for aggressive trading during market recoveries.

While the return to a positive premium is viewed as a bullish signal, some analysts remain cautious. Research from 10x Research suggests that spot trading volumes in South Korea have not yet increased in proportion to the premium, making it premature to conclude that South Korean capital is the primary driver of a new market rally.