Bank of Korea Enters Gold Market with Spot Purchases and Domestic Mining Deals

The Bank of Korea has entered the gold market for the first time since 2013, marking its debut in official gold holdings.

According to Jeong Hee-sup, the leader of the central bank's Reserve Management Group, purchases have commenced via spot gold exchange-traded products. In addition to ETF acquisitions, the bank has set up a mechanism to acquire gold mined domestically in the coming period.

The Bank of Korea will source locally produced gold through a collaborative effort with the Korea Exchange, the Korea Securities Depository, and LS MnM, a domestic refiner. Korea Zinc is also anticipated to contribute qualifying gold to the bank's reserves.