North Korean Defectors, Libyans Indicted for ‘Kimchi Premium’ Crypto Trading

Two other North Korean defectors, one aged 43 and the other aged 54, were charged with violating the Electronic Financial Transaction Act and the Specific Financial Information Act respectively. Both of these individuals were released on bail pending trial.

Current kimchi premium values – as trading volumes grow in South Korea, the discrepancy between domestic prices and those on overseas platforms has grown. (Source: Cryprice.com)

Prosecutors say the group spent over $76 million buying coins – and made “thousands” of token buys on overseas exchanges. Officers said the group worked on behalf of suspected “accomplices” and “clients” in Libya.

An official from the prosecution service was quoted as stating:

“We are continuing to investigate [suspected] accomplices. We will work hard to recover [the funds] and prevent similar crimes.”

What Is the Kimchi Premium?

Some traders have sought to exploit this by buying coins from over-the-counter vendors and then “dumping” them on domestic platforms.

In the 2017 bull run, the premium peaked at about 55%. The premium then vanished. But it resurfaced and rose into the late teens and above during the 2020-2021 bull run.

Prosecutors say the group was active between October 2021 and October 2022.

They added that the 44-year-old Libyan worked as a “broker” of sorts for clients in his native country. His clients allegedly hoped he would help speed up remittances and help them spend less on fees.