Bank of Korea Resumes Gold Buying After 13-Year Pause

The Bank of Korea (BOK) has resumed gold buying after a 13-year pause. The central bank started investing in overseas-listed spot gold exchange-traded funds (ETFs) and has also established a framework to purchase domestically produced gold.

'We have begun purchasing spot gold ETFs on a very small scale,' Jung Hee-sup, director-general of the Reserve Management Group, said.

The BOK's holdings have remained unchanged at 104.4 metric tons in total for the past 13 years, equivalent to about 1.1 percent of its foreign exchange reserves. It ranks 39th among the world's central banks in gold holdings.

Gold prices climbed to record highs due to inflation concerns and geopolitical risks, prompting central banks around the world to increase their gold purchases. The BOK plans to buy roughly 4 to 5 metric tons of domestically produced gold that are not absorbed by domestic demand or exported.