Bank of Korea Returns to Gold Reserves After Decade-Long Absence

The Bank of Korea is planning to make its first gold purchase in over 13 years as part of a shift in its foreign reserve strategy. The central bank will acquire physical gold and store it domestically, rather than relying on overseas storage facilities like those operated by the Bank of England.

This move reflects a broader global trend of central banks increasing their focus on gold as a strategic financial asset. Central banks globally have been buying more gold amid concerns about economic uncertainty, currency risks, geopolitical tensions, and changes in the international financial system.

The decision to store gold domestically highlights a growing emphasis on physical control and accessibility of national reserves. Unlike some major central banks that have significantly increased their gold purchases in recent years, South Korea has maintained a relatively stable position without adding significant amounts of physical gold since its previous purchases more than a decade ago.