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What is Kimchi Premium?

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김치프리미엄

The degree to which prices on Korean exchanges are higher than prices on overseas exchanges, expressed as a ratio. It arises because money cannot cross borders instantly, so prices in the two markets do not become equal right away. A wide gap is read as a sign of overheated domestic demand, and a negative value is called a reverse premium.

Kimchi PremiumKRoverseasdifferencefunds cannot cross borders at once, so the prices spread aparta negative value is a reverse premium

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Kimchi Premium meaning — Trading glossary | MarketSurfer