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

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

The central bank is resuming physical gold purchases through negotiated KRX trades and KSD custody as it modestly broadens reserves while limiting disruption to the local market.

Fact Check
All claim elements are corroborated by multiple independent, credible outlets published on the same date (Aug 3, 2026). The Korea Times and Korea JoongAng Daily both confirm BOK resuming gold buying for the first time in 13 years, purchasing domestically produced gold through negotiated/block trades via the Korea Exchange (KRX) with Korea Securities Depository (KSD) custody, and framing this as a modest, gradual broadening of reserves designed to limit local market disruption. UPI and Bloomingbit (citing Hankyung) independently corroborate. No conflicting evidence was found. The only limitation is that I relied on major news outlets rather than the BOK's own announcement page directly.
Summary

The Bank of Korea is resuming purchases of domestically produced physical gold for the first time since 2013, using the Korea Exchange's gold market and Korea Securities Depository infrastructure to buy export-bound metal from local producer LS MnM. The central bank said the arrangement is designed to minimize the impact on domestic gold prices and reduce intraday market volatility by handling transactions as block trades, while also supporting gradual diversification of foreign-exchange reserves away from concentrated dollar assets. The move follows a long pause after the bank bought a cumulative 90 tons of gold between 2011 and 2013 and then halted purchases after a decline in gold prices led to valuation losses. As of the end of June, South Korea's foreign-exchange reserves stood at $427.36 billion, with gold reserves valued at about $4.79 billion, or 1.1% of the total. The Bank of Korea said future purchases are unlikely to be large, given that South Korea produces about 40 to 45 tons of gold annually and only about 4 to 5 tons is available for export, and said the timing of transactions will depend on producer requests, domestic and overseas prices, and market conditions rather than any view on the direction of gold prices.

Terms & Concepts
  • foreign-exchange reserves: A country's reserve assets, typically including foreign currencies and gold, held to support financial stability and external payments.
  • block trades: Large negotiated transactions executed in a way intended to reduce disruption to regular market trading.