Bank of Korea Resumes Physical Gold Buys After 13-Year Pause

Bank of Korea restarts physical gold purchases via KRX/KSD to diversify reserves. Initial volume limited to 4-5 tons of exportable domestic supply, signaling cautious reserve rebalancing.

Woofun AI reports that the Bank of Korea has reinstated its physical gold acquisition program, marking the first such move since 2013. The central bank established a cooperation framework with the Korea Exchange, Korea Securities Depository, and gold producer LS MnM to facilitate bulk transactions. Purchases will target gold intended for export, with settlement and custody managed by the KSD to minimize disruption to domestic market volatility.

The Bank of Korea noted that its gold reserves accounted for only 1.1% of total foreign exchange reserves as of June end. Future purchases are expected to be modest, limited to approximately 4 to 5 tons of annual exportable supply from domestic production. The institution emphasized that these acquisitions are driven by corporate procurement timing and market conditions rather than specific price trend predictions.