Korea's Central Bank Buys Gold from Domestic Producers

South Korea's central bank is taking steps to diversify its gold holdings by purchasing the precious metal from domestic producers. The Bank of Korea has established a framework for buying gold from local suppliers through the Korea Exchange and Korea Securities Depository. This move marks the bank's first domestic gold purchases in 13 years, according to local media reports.

The central bank will buy gold at international market prices via transactions, payment, and deposit systems provided by KRX and KSD. The purchases are limited to gold intended for exports, which will be bought at contract prices. This approach is expected to have a minimal impact on the trading price of gold in the country.

The Bank of Korea stated that the domestic gold purchases will support its management of foreign reserves. By diversifying its sources of supply, the central bank aims to strengthen its reserve portfolio and reduce dependence on external markets.