According to a recent report by Chainalysis, the cryptocurrency market in South Korea is showing signs of growth, driven primarily by the rise of the Korea Premium Index. The report highlights that local demand, institutional trading, and unique market conditions in the country are leading to crypto prices on local exchanges exceeding global averages.

The Korea Premium Index measures the price difference between cryptocurrencies such as BTC, ETH, and altcoins on Korean exchanges compared to the global market. Chainalysis's report notes that this index has significantly increased, evident from "the extent to which Korean traders are willing to pay above market prices for digital assets." This premium has reached historic highs during periods of market uncertainty and volatility, prompting retail and institutional investors to seize potential profit opportunities.

The report further emphasizes that "Koreans often use local exchanges" for fund management, with the amount transferred from local to global exchanges being "highly correlated" with the premium.