South Korean Central Bank Turns to Domestic Gold Supplies

South Korea's central bank has announced its plans to buy gold from domestic producers as part of an effort to diversify its sources of supply and increase its holdings. According to a report, the Bank of Korea will establish a framework for domestic gold purchases with local producers, including the Korea Exchange and Korea Securities Depository.

The central bank will purchase gold at international market prices through transactions, payment, and deposit systems operated by KRX and KSD. The purchases are expected to have a limited impact on trading prices of gold in the country as they involve only gold intended for exports sold at contract prices.

The Bank of Korea stated that these domestic gold purchases will support its management of foreign reserves, marking the central bank's first such move in 13 years. The report noted that local media reports have confirmed this development.