Korea Launches Investigation Into “Kimchi Premium”
A South Korean news outlet said that the country’s authorities are looking into massive foreign currency violations involving two banks. As per the news reports from Yonhapnews, an investigation has been launched into Woori Bank and Shinhan Bank.
The Supreme Prosecutors’ Office recently transferred this matter to the Seoul Central District Prosecutors’ Office’s International Crime Investigation Department, the legal community was notified on April 25. This came about as a result of the Financial Supervisory Service providing “Investigation References” in connection with it.
South Korean is investigating remittances totaling more than 2.1 trillion won
The reported remittance total exceeds 2.1 trillion won ($1.6 billion), or remittances. According to sources, 800 billion won was sent to China through Woori Bank and 1.3 trillion won was sent to China through Shinhan Bank.
The remittance is being linked by officials to potential prospects of trading operations by crypto dealers, also known as Bitcoin Kimchi Premium.
It is commonly known that opportunistic traders frequently benefit from the Kimchi Premium by acquiring Bitcoin from OTC foreign dealers before reselling them on exchanges for a profit.
The most recent development is that a financial regulator in South Korea is now targeting Bitcoin Kimchi Premium traders and intends to file charges against individuals who are at fault. This allegedly recent probe is a follow-up to the previous one that lasted a full year.
The Kimchi Pricing Index primarily draws attention to the pricing disparity between South Korean markets and markets elsewhere in the world. Therefore, a growing quantity indicates the presence of a propensity for purchase. Market participants from Korea generally spend more money than usual to purchase Bitcoin in such circumstances.
According to the FSS reports, the banks allegedly made money using the bitcoin Kimchi premium and sent the money offshore. Bitcoin is currently trading at $21,117.
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