# Korea Premium Index

## Definition

Korea Premium Index is the percent difference between the VWAP of Korean exchanges and other exchanges. 

## Interpretation

Korean crypto market is mostly made up of retail investors due to regulations against institutional investors and stable coins. 

Utilizing this unique market structure, Korean Premium Index indicates the **closest meaning to the retailers' sentiment and buying power** or particularly Korean market buying power. 

Historically,  Korean premium over 16 percent gave an indication that the price could be a local top or an indication of FOMO in the market.

![](/files/8KFuy6uBuamltDBhWdb0)

### By value itself <a href="#interpretation" id="interpretation"></a>

![](/files/2XWvPZUYghvQg5lUxNFW)

It shows how much premium retailers or Koreans are willing to pay for the purchase&#x20;

* **Above '0' (+)**:  Retailers are willing to pay a **premium** for the purchase
* **Below '0' (-)**: Retailers are only willing to purchase at a **discount**&#x20;

### By examining trend  <a href="#use-case" id="use-case"></a>

It shows the **level of retailers' Activeness & Volatility**

* **Increasing trend** : **Expanding interest and activeness**&#x20;

  Increasing values in the Korean Premium Index indicates that more retailers are continuously buying at a higher price than average market price.
* **Decreasing** **trend** : **Diminishing interest and activeness**

  Decreasing values in the Korean Premium Index indicates that retailers are continuously selling at a lower price than average market price.

## Link to Our Data

* [BTC: Korea Premium Index in CryptoQuant Live Chart](https://cryptoquant.com/overview/btc-market-data/465?window=day)
* [ETH: Korea Premium Index in CryptoQuant Live Chart ](https://cryptoquant.com/overview/eth-market-data/466?window=day)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://userguide.cryptoquant.com/cryptoquant-metrics/fund-premium/korea-premium-index.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.