Bank of Korea Eyes Physical Gold Purchase After Seven-Year Drought

The Bank of Korea is considering purchasing about one metric ton of domestically produced physical gold worth around $140 million, its first such acquisition since 2013. The central bank has established a purchase framework with South Korean producers LS MnM and Korea Zinc, which produce approximately 40 to 45 tons of gold annually as a byproduct of metal refining.

The Bank of Korea would pay in Korean won through negotiated block trades using infrastructure operated by the Korea Exchange and Korea Securities Depository. The final timing and volume remain undecided, with the central bank set to assess market conditions when producers request a purchase.

In 2011, 2012, and 2013, the Bank of Korea bought 90 tons of physical gold before stopping such purchases. It currently holds 104.4 tons of physical gold as of mid-2026 and has also begun buying gold exchange-traded funds in the second quarter, acquiring about $250 million in ETF exposure.