BOK Dives into Gold with $250M SPDR Investment

The Bank of Korea (BOK) has made its first gold investment in over a decade, purchasing shares in the SPDR Gold Trust worth more than US$250 million. The move marks a shift in the central bank's reserve strategy, which previously focused on foreign currencies and securities.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the BOK held 679,765 shares of SPDR Gold Trust as of the end of the second quarter, valued at $250.4 million. This investment is significant, considering that gold ETFs provide investors with exposure to gold without owning physical assets.

The BOK's decision to invest in gold comes amid growing concerns about geopolitical and inflation risks. The central bank has recently announced plans to purchase domestically produced gold to further diversify its reserves.