In a dramatic reversal, Bitcoin prices are lower in South Korea than in other countries. The so-called Kimchi discount has prompted foreigners to sell Bitcoin outside Korea and buy them inside Korea.
This arbitrage trading enabled investors to gain 4 percent.
On Monday, the Bitcoin price has surpassed $3,700 in South Korea, about 4 percent lower than overseas. One time on Monday morning (precisely 11 a.m. in SouthKorea), the difference between Korea and abroad widened to 4.5 percent or 200,000 won.
The Kimchi discount was a golden opportunity for non-Koreans to arbitrage the price differential for a quick gain of 4.5 percent.

Kimchi Discount

Until October last year, the Kimchi premium prevailed, meaning Bitcoin is more expensive in Korea than overseas. The Bitcoin price had been more than 30 percent high in Korea than abroad
However, the government’s crackdown on cryptocurrencies, a series of hacking and frauds involving the South Korean cryptocurrency exchanges forced many local investors to dump their holding. This low demand has led to the Kimchi discount.
Unlike stock and bonds, multiple prices exist for the same cryptocurrency.