Bank of Korea prepares for physical gold purchase after 13-year hiatus
The Bank of Korea aims to increase the share of gold in its reserves by purchasing approximately 1 ton of domestically produced gold in December.
12punto
The Bank of Korea (BOK) is preparing to make its first physical gold purchase since 2013. It has been reported that the bank plans to purchase approximately 1 ton of domestically produced gold in December.
According to a statement by ruling party lawmaker Jung Tae-ho, the central bank expects to carry out its first transaction around December 14, following the establishment of the necessary infrastructure for trading domestically produced gold.
As of the end of August, the BOK holds 104.4 tons of physical gold valued at 14.88 billion dollars at market prices. This amount corresponds to 3.4 percent of the bank's total foreign exchange reserves.
The central bank's gold assets are not limited to physical reserves alone. As of the end of June, the bank also holds gold exchange-traded funds (ETFs) valued at 250 million dollars.
The BOK plans to gradually increase the share of gold within its foreign exchange reserves in the medium to long term. The bank assesses that this step will strengthen its safe-asset position during potential periods of crisis.