> ## Documentation Index
> Fetch the complete documentation index at: https://docs.cryptoquant.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Korea Premium Index

> Korea Premium Index is the percent difference between the market price of Korean exchanges and other exchanges

## What is Korea Premium Index?

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

## How to interpret Korea Premium Index

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.

<img src="https://mintcdn.com/cryptoquant/Hw2Gulyp0hXS0SGm/images/userguide/8KFuy6uBuamltDBhWdb0.png?fit=max&auto=format&n=Hw2Gulyp0hXS0SGm&q=85&s=86706ab4e3793906274c564362b6a5eb" alt="" width="2036" height="834" data-path="images/userguide/8KFuy6uBuamltDBhWdb0.png" />

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

<img src="https://mintcdn.com/cryptoquant/Hw2Gulyp0hXS0SGm/images/userguide/2XWvPZUYghvQg5lUxNFW.png?fit=max&auto=format&n=Hw2Gulyp0hXS0SGm&q=85&s=2ab63c824ceb4b2879e5f9123a761a21" alt="" width="2012" height="828" data-path="images/userguide/2XWvPZUYghvQg5lUxNFW.png" />

It shows how much premium retailers or Koreans are willing to pay for the purchase

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

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

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

* **Increasing trend** : **Expanding interest and activeness**

  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)