Bank of Korea Launches Domestic Gold Acquisition Program

Jeong Hee-sup, head of the Bank of Korea's Reserve Management Group, confirmed that the institution has begun acquiring gold through spot exchange-traded products. This move marks the nation's first significant gold reserve activity since 2013, reinforcing the metal's status as a necessary safe-haven asset in an increasingly uncertain global environment.

To facilitate the domestic portion of this strategy, the central bank has established a cooperative framework involving the Korea Exchange, the Korea Securities Depository, and major producers LS MnM and Korea Zinc. These companies currently export between 4 and 5 metric tons of gold annually, a portion of which the Bank of Korea intends to absorb when market conditions align with its reserve objectives. Jeong emphasized that the accumulation will be incremental rather than immediate, ensuring the share of gold grows in accordance with long-term institutional requirements.