Kimchi Premium is a term used to describe the difference in the price of Bitcoin on South Korean exchanges compared to the price on global exchanges. This difference is caused by the high demand for Bitcoin in South Korea due to several factors, such as capital controls and limited investment opportunities in the country.

When the demand for Bitcoin in South Korea increases, the price of Bitcoin on South Korean exchanges rises higher than the price on global exchanges, resulting in the Kimchi Premium. This premium has been observed to fluctuate significantly over time and can range from a few percentage points to more than 50%.

The Kimchi Premium can impact the overall price of Bitcoin in the global market by creating a price disparity. Traders can take advantage of the price difference by buying Bitcoin on global exchanges and selling it on South Korean exchanges, thereby profiting from the premium.

Overall, the Kimchi Premium is an important factor to consider for investors and traders in the cryptocurrency market, as it can provide insights into the demand for Bitcoin in South Korea and its potential impact on the global market.