Bank of Korea Prepares First Physical Gold Purchase Since 2013
The central bank said the move could reduce foreign exchange risk as domestic producers supply gold through over-the-counter block trades.
- On Monday, the Bank of Korea announced plans to purchase domestically produced gold for the first time in 13 years, establishing partnerships with the Korea Exchange, Korea Securities Depository, and local producers to diversify foreign reserves.
- Rising geopolitical risks prompted the central bank to seek diversification, as gold currently represents just 1.1% of its $427.36 billion foreign reserves; the BOK holds 104.4 tons unchanged since 2013.
- The BOK established a cooperative system with LS MnM Co. and Korea Zinc Co., which produce approximately 40 to 45 tons of gold annually and export about 10 percent of that output.
- Jeong Hee-sup, head of the BOK's Reserve Management Group, stated the bank will not make large purchases, saying, "We intend to gradually increase the share of gold according to medium- and long-term needs."
- Market conditions will dictate transaction timing, according to officials; the bank also purchased small amounts of gold-linked ETFs in the second quarter as spot gold traded at about $4,050 on Friday.
12 Articles
12 Articles
Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?
South Korea's return to the gold market after 13 years has reinforced strong central bank demand, a key factor supporting bullion prices despite recent volatility. Analysts believe the correction offers a gradual buying opportunity, with sustained official purchases, geopolitical risks and monetary uncertainty underpinning gold's long-term investment case.
South Korea's central bank (BOK) is considering resuming physical gold purchases for the first time in nearly 13 years in response to rising geopolitical risks.
BOK to buy domestically produced gold for 1st time in 13 years
The Bank of Korea (BOK) said Monday it plans to purchase domestically produced gold for the first time in 13 years through over-the-counter transactions. The BOK said it has established a partnership with LS MnM Co., a copper smelting and refining company, the Korea Exchange (KRX) and the Korea Securities Depository (KSD). LS MnM is one of South Korea's two major gold producers, along with Korea Zinc Co., producing gold as a byproduct of copper,…
The Bank of Korea is increasing its gold holdings within its foreign exchange reserves. This marks the resumption of gold purchases for the first time in 13 years, following a suspension last year in 2013. The Bank of Korea plans to purchase domestically produced gold intended for export. The government has decided to exempt the value-added tax (VAT) payable during this process starting January 1 of next year. The Bank of Korea stated, “To estab…
(Seoul = Yonhap News) Reporter Han Ji-hoon = The Bank of Korea is resuming physical gold purchases for the first time in 13 years. The unprecedented purchase of domestically produced gold intended for export on the over-the-counter...
Coverage Details
Bias Distribution
- 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
