Bank of Korea Reenters Gold Market After 13-Year Absence

The Bank of Korea has resumed gold investment after a 13-year hiatus. The central bank disclosed that it held over $250 million in shares of the SPDR GOLD TR (GLD) ETF during the second quarter of this year.

This marks the first time since 2013 that the Bank of Korea purchased physical gold, when it bought 20 tonnes under former Governor Kim Choong-soo. However, this latest investment is in the form of an ETF, which is classified as a marketable security separate from physical gold.

The acquisition appears to have occurred during the second quarter and was valued at $250.41 million as of end-June. The Bank of Korea's decision has sparked suggestions that it may expand into physical gold purchases in the future, particularly given its recent announcement to purchase domestically produced gold for export.