Korea Central Bank Buys Domestic Gold for First Time in 13 Years

The Bank of Korea is planning to purchase approximately one tonne of domestically produced gold in December, valued at around $140 million. This move aims to diversify its reserves and increase its holdings of safe-haven assets.

According to documents submitted by the bank to lawmaker Chung Tae-ho's office, systems for the purchases are expected to be ready on December 14. However, the actual timing and purchase volume will depend on implementation conditions and quantities offered by domestic producers.

The new arrangement would allow the bank to buy gold in South Korean currency (the won) rather than US dollars, helping limit the impact of the purchases on the domestic foreign exchange market.

This planned bullion purchase follows the bank's return to indirect gold investment in 2026, when it acquired $250 million worth of gold exchange-traded funds. The bank currently holds 104.4 tonnes of physical gold, placing South Korea 39th globally, according to World Gold Council data.