The Financial Channel (CCTV-2) put together a report detailing the challenges faced by the miners in Korea along with the state television of China’s document on the toll taken by the cryptocurrency companies in South Korea during the bear market of 2018. This report indicates that the 2018 bear market aggravated further as cryptocurrency premiums in Korea saw a 97.5 percent drop, pushing around 70 to 80 miners to halt their operations.
The report discusses in detail an example of a miner who amidst an all-time high market of January last year purchased nearly 1,000 mining rigs to generate ether.
According to the report, the cost of mining an ether at the start of 2018 was around 214,000 Korean won (KRW) (≈ $190) and considering the price of surging altcoins it touches the mark of 2.35 million KRW each.
Although miners were getting good profit when the market was at its peak still the reported miners think that out of every five miners operational four are since shut down. He adds, “To my knowledge, 70 to 80 percent of mining farms have ceased operations, and many even declared bankruptcy.”
The report also asserts that the challenges faced by the Korean miners were worsened by sinking premium on cryptocurrency prices in the country, dubbed as “Kimchi premium”, which slumped to just 1 percent from 40 percent at the start fo the year.
Further, the report highlights that the as of December 31, 2018, the Bank of Korea, the central bank of South Korea, estimates that KRW pairings add to roughly 5.8 percent of global trade between fiat and crypto, which is nearly 50 percent drop when compared to the KRW volume at the end of 2017.