According to a local news report, South Korean prosecutors indicted 20 people on January 18 for illegally sending about 4 trillion won (roughly $3.2 billion) overseas to profit from the kimchi premium, as reported by Cryptoslate.
Cryptoslate further noted that the price difference between cryptocurrency sales on South Korean exchanges and those on foreign exchanges is known as the “kimchi premium.”
The accused individuals sent money to Hong Kong and other nations in the guise of foreign trade payments using 256 South Korean bank accounts in order to purchase cryptocurrencies there.
According to the report, the individuals later allegedly sold the cryptocurrencies in South Korea for a profit. The accused allegedly paid brokers 20 million won ($16,180) in bribes to swiftly open bank accounts and exchange currencies at preferential rates, Cryptoslate noted.
According to the allegations, the illegal transactions happened between January 2021 and August 2022. The premium price for kimchi increased to 5% during this time.
(With insights from Cryptoslate)