Korea's Central Bank Expands Gold Reserves with Domestic Buying Program

The Bank of Korea has announced plans to expand its gold reserves through a domestic buying program. This move is part of a broader trend of central banks increasing their gold holdings, with net purchases rising from an average of 473 tonnes between 2010 and 2021 to nearly 1,000 tonnes over the last four years.

The Bank of Korea currently holds just over 104 tonnes of gold, making up about 1.1 percent of the country’s total reserves. The central bank plans to purchase gold from South Korean miners at international spot prices through a framework established with domestic gold producers LS MnM and Korea Zinc.

Bank of Korea Reserve Management Group head Jeong Hee-sup emphasized that the domestic gold purchases are part of a long-term strategy to expand the country’s gold reserves, saying, “We do not plan to make a large purchase all at once. We intend to gradually increase the share of gold according to medium- and long-term needs.”