Bank of Korea to Buy Physical Gold for First Time Since 2013
The Bank of Korea is set to purchase physical gold for the first time in 13 years. The central bank has established a cooperative system with the Korea Exchange, Korea Securities Depository and domestic gold producer LS MnM. Korea Zinc is also expected to supply eligible gold.
Under the proposed arrangement, a producer would notify the central bank of the quantity available and its preferred transaction date. The central bank would then decide whether to buy after considering international gold prices and its reserve-management plans.
The Bank of Korea could also buy physical gold in international markets when domestic export supplies are insufficient or price conditions are unfavorable. Officials said the bank would select among domestically produced bullion, overseas purchases and gold exchange-traded funds based on market conditions.