Bank of Korea Dives Back into Gold After 13-Year Absence

The Bank of Korea has resumed investing in gold for the first time in 13 years through an Exchange Traded Fund (ETF).

According to the central bank, as of June this year, gold accounts for 1.1% of its $47.36 billion foreign exchange reserves, totaling around $4.79 billion.

The Bank of Korea plans to diversify channels for buying domestically produced gold and expand its real gold holdings in the mid- to long-term.

Central banks worldwide are increasing their gold holdings to prepare for geopolitical risks and reduce dependence on dollar assets, said Chung Hee-sup, head of the Bank of Korea's foreign capital management.