Bank of Korea to buy domestic gold for first time in 13 years

Key facts

• The Bank of Korea will purchase domestically produced gold.
• This is the first domestic gold purchase in 13 years.
• Purchases will be made through over-the-counter transactions.
• Partnerships are being established with LS MnM, the Korea Exchange, and the Korea Securities Depository.
• The Bank of Korea aims to diversify its reserves.
• The initiative aims to support the domestic gold market.

The Bank of Korea is preparing to buy domestically produced gold, marking the first such acquisition in 13 years. This initiative will be conducted through over-the-counter (OTC) transactions. To facilitate these purchases, the Bank of Korea is establishing partnerships with prominent domestic entities including LS MnM, the Korea Exchange, and the Korea Securities Depository. This strategic move by the central bank is intended to diversify its foreign exchange reserves and provide support to the domestic gold market. The decision reflects a broader trend among central banks to explore alternative reserve assets beyond traditional currencies and gold held internationally.