South Korea’s Political Crisis Fuels Spike in Bitcoin Kimchi Premium

The South Korean won has fallen to its weakest level against the U.S. dollar since March 2009, resulting in South Koreans paying 3% more for Bitcoin (BTC) compared to their American counterparts, according to CryptoQuant data.

Bitcoin is currently priced at 145,000,000 won ($98,600) on Upbit, South Korea’s largest cryptocurrency exchange, while on Coinbase, it is valued at around $96,700. This price hike comes amid rising political instability, as the South Korean parliament voted to impeach Prime Minister Han Duck-soo, following the impeachment of President Yoon Suk Yeol. The won dropped to a 15-year low against the dollar as the political crisis deepened.

In a post on X, Jeff Park, head of alpha strategies at Bitwise, commented, “This situation is fundamentally about election fraud and the diminishing trust in South Korea’s National Election Commission (NEC). The weaponization of impeachment, alongside allegations of foreign interference in elections, exposes the vulnerability of democracies to disinformation. This is not just a Korean issue—it’s a cautionary tale for democracies everywhere.”