BOK Diversifies Reserves with Renewed Gold Buying Spree

The Bank of Korea (BOK) has resumed its gold-buying spree after over a decade, increasing its exposure to the precious metal as it diversifies its foreign reserves. The central bank currently holds 104.4 metric tons of gold, valued at $4.79 billion, or 1.1 percent of its total foreign exchange reserves of $427.36 billion.

This relatively small share highlights the BOK's limited exposure to gold compared with other central banks. However, recent moves suggest that the bank is reassessing the role of gold in its foreign reserve portfolio.

The BOK purchased 679,765 shares of the SPDR Gold Trust ETF in the second quarter, valued at $250.41 million. This marks a different investment strategy for the central bank, which traditionally built its gold holdings by purchasing physical gold.

The BOK also plans to up stake in physical gold through a new initiative that allows it to purchase locally produced gold and store it domestically, diversifying storage locations currently concentrated at the Bank of England.