1. Growth of Local Demand
2. Institutional Factors and Implications
3. Comparison of Crypto Firm and Bank Employee Salaries

According to a recent report by Chainalysis, South Korea’s cryptocurrency market is witnessing growth primarily driven by the rise in the Korea Premium Index.

Growth of Local Demand

The Chainalysis report notes a sharp increase in the Korea Premium Index, illustrating the extent to which South Korean traders are paying above-market prices for digital assets. The premium is historically at its highest during periods of market uncertainty and turbulence, spurring both retail and institutional investors to capitalize on potential gain opportunities. The report further highlights that South Koreans often use local exchanges for fund management and that the volume transferred from local to global exchanges is highly correlated with the premium.

Institutional Factors and Implications

The report discusses institutional investors in detail and reveals that they are fueling the Korea Premium Index through large-scale transactions. Institutional participants control and shift a significant portion of the market’s transactional volume, increasing the premium on local exchanges even further. This premium increase occurs as institutional investors engage in arbitrage opportunities, purchasing crypto at lower prices from global exchanges to sell on South Korean platforms.

Comparison of Crypto Firm and Bank Employee Salaries

A report released by the Financial Supervisory Service (FSS) revealed that the average salary of Dunamu employees, the operator of the Upbit cryptocurrency exchange, outperformed the salaries of major bank employees. Dunamu employees and executives received an average of 133.73 million South Korean won (roughly $99,500) per year. In comparison, employees of major banks like KB Kookmin Bank, Hana Bank, Woori Bank, and Shinhan Bank earned an average of 116 million won (roughly $86,700).

The growth of South Korea’s cryptocurrency market illustrates the impact of local demand and institutional activity. The increased earnings of crypto firm employees highlight the industry’s significance and the growing interest in digital assets.