Korea Resumes Physical Gold Purchases After 13-Year Pause
The Bank of Korea (BOK) is set to resume physical gold purchases for the first time since 2013. The central bank plans to buy around one metric ton of domestically produced bullion in December, with the actual timing and volume depending on the availability of export-bound gold.
The BOK has established a framework with domestic gold producers, the Korea Exchange (KRX) and the Korea Securities Depository (KSD), which will enable it to acquire gold in Korean won without using foreign currency. Transactions will be conducted through negotiated block trades based on international gold prices, designed to avoid generating additional demand in the domestic gold market.
The BOK's decision to add gold to its coffers comes as part of its plan to expand safe-asset holdings and diversify its foreign reserves over the medium to long term. The central bank has already resumed gold-related investment this year through financial assets, with a $250.41 million purchase of the U.S.-listed SPDR Gold Trust at the end of June.