whether the cause of this is happening, is it something to do with the decision of the south korea government?
Yes those news surely had an impact on the Bitcoin markets. Also the fact that coinmarketcap decided not to take some south korean exchanges into account anymore when calculating the average prices surely had its effect. But I believe that this stuff only has minor effects on the overall market. As we have already seen the recent example of chinas crackdown on ICO's, this only has temporarily effects until Bitcoin evolves stronger than ever from this "crisis".
yes i still remember when china banned ICOs
at that time, China's news to ban ICOs had a very strong impact on bitcoin prices
but after that, slowly bitcoin prices recovered and now here we are at $14k