Cryptocurrency trading in South Korea has experienced a significant increase, surpassing activity on the national benchmark Kospi share index. This trend highlights the growing popularity of digital currencies among local investors, who are increasingly attracted to the market despite its inherent risks.

Local exchanges dominate the landscape due to strict currency controls and anti-money laundering regulations that limit South Koreans' access to international crypto markets. As a result, Bitcoin and other cryptocurrencies are traded at a noticeable premium in South Korea compared to global prices, reflecting the high demand and limited supply within the country. This phenomenon, known as the "Kimchi Premium," emphasizes the unique dynamics of the South Korean crypto market, where local trading activity continues to thrive despite regulatory challenges.