Bank of Korea Rejoins Gold Buying After 13-Year Absence

South Korea's central bank, the Bank of Korea (BOK), has resumed buying gold after a 13-year hiatus. The BOK announced it will purchase overseas-listed spot gold ETFs and domestically produced physical gold through a new framework established with copper smelter LS MnM, the Korea Exchange, and the Korea Securities Depository.

The decision comes as interest in safe-haven assets like gold has increased due to escalating geopolitical risks. Jung Hee-sup, director-general of the BOK's Reserve Management Group, cited this reason for the return to gold purchases.

The BOK holds 104.4 tonnes of gold worth approximately $4.79 billion, representing just 1.1% of its total foreign exchange reserves. This is significantly lower than most developed economies, which typically hold gold at 10% to 20% of their foreign exchange reserves.