Kimchi premium turns negative, and the decline of the Korean wave is cooler than expected

ME News report: On May 27 (UTC+8), South Korea’s cryptocurrency trading volume has fallen to about one-tenth of the trading volume of the Korea Composite Stock Price Index (KOSPI). This trend began with the crypto market crash in October 2025 and South Korea’s stock market continuously setting new highs. As of now, the trading ratio between the five largest South Korean won cryptocurrency trading platforms and KOSPI is only 8%, while it was as high as 323% in December 2024. Market weakness started in the second half of last year. In August 2025, the trading volumes of the two markets were similar, but in October, cryptocurrencies plunged due to futures liquidations, while KOSPI benefited from continued growth in the semiconductor industry and government policies. Compared with August 2025, the won market’s trading value fell by 71% in May 2026, while KOSPI rose by 243%. In addition, the Bitcoin “Kimchi Premium,” which reflects market activity, has been mostly negative since March, indicating weakness in the South Korean market.