Bank of Korea Resumes Gold Purchases After 13-Year Hiatus

The Bank of Korea (BOK) has resumed buying gold after a 13-year hiatus. The central bank began purchasing spot gold ETFs on a small scale, with Director-General Jung Hee-sup stating that this move helps increase exposure to gold, despite not being physical.

The BOK's gold holdings have remained at 104.4 tons for the past 13 years, equivalent to about 1.1% of the country's foreign exchange reserves. This puts the Bank of Korea at 39th among central banks worldwide in terms of gold holdings, according to Yonhap.

The decision to resume buying gold comes as gold prices have hit record highs and amid concerns about inflation and geopolitical risks driving up gold prices. Central banks around the world are increasing their gold purchases, with Jung analyzing that geopolitical risk has become a long-term feature of the global environment.