South Korea Is Preparing to Increase Its Gold Reserves!
This will be the bank’s first physical gold purchase since 2013.
The Bank of Korea plans to purchase approximately 1 ton of domestically produced gold. This will be the bank’s first physical gold purchase since 2013. Jung Tae-ho, a lawmaker from the ruling party, said the bank plans to carry out its first transaction around December 14 after establishing the necessary trading system.
According to the central bank’s data as of the end of August, it holds 104.4 tons of physical gold reserves worth $14.88 billion at market prices. This amount accounts for 3.4% of the bank’s total foreign exchange reserves. In addition, the bank holds a gold exchange-traded fund worth $250 million.
The Bank of Korea plans to gradually increase the share of gold in its foreign exchange reserves over the medium and long term. The bank believes this strategy could strengthen its safe-haven assets during potential financial crises. The move is expected to further increase gold’s role as a reserve asset. Experts say increasing gold reserves can provide central banks with additional protection against market volatility and currency risks.