Against the backdrop of sustained gold buying by global central banks, the Bank of Korea has reshuffled its gold‑asset allocation. Latest regulatory filings show the Bank of Korea purchased approximately $250 million worth of gold‑ETF‑linked assets in the second quarter. This marks its first gold‑related investment since 2013, signalling a reassessment of gold’s allocation value within foreign‑exchange reserves.
Bank of Korea Makes Its First Gold‑Related Purchase in 13 Years
According to documents filed with the U.S. Securities and Exchange Commission (SEC), the Bank of Korea held 679,765 shares of SPDR Gold Shares (GLD) worth roughly $250 million at the end of the second quarter.
Three months earlier, the Bank of Korea held no positions in this world‑largest physically‑backed gold ETF.
The Bank of Korea confirmed this is its first gold‑related investment since 2013. Nevertheless, gold ETFs are classified as securities under accounting rules, so this purchase will not raise South Korea’s officially‑reported physical‑gold reserves and will instead be counted within its foreign‑reserve portfolio.
Choi Kyu‑ho, economist at Hanwha Investment & Securities, says the Bank of Korea’s current gold allocation ratio remains relatively low.
From the perspective of aligning with major global central‑bank reserve‑allocation standards, he believes the Bank of Korea still has room to expand gold holdings and expects it to lift the share of gold assets gradually.
Global Central Banks Keep Aggressively Accumulating Gold
The Bank of Korea’s return to the gold market comes as global central‑banks boost gold reserves at an unprecedented pace.
World Gold Council data shows global monetary authorities bought a net 289 tonnes of gold in the three‑month period ending June, hitting the highest second‑quarter reading on record.
In recent years, more central banks have diveRSIfied foreign‑exchange assets via gold‑reserve accumulation to mitigate potential shocks from geopolitical risks, financial‑market volatility and single‑currency exposure.
By contrast, the Bank of Korea stayed out of this central‑bank gold‑buying wave for a long time. Its official gold reserves have stayed flat at around 104.4 tonnes since its last physical‑gold purchase in 2013.
This gold‑ETF purchase is therefore viewed by markets as a key signal of shifting gold‑reserve strategy at the Bank of Korea.
South Korea Also Prepares to Restart Domestic Gold Procurement
Notably, the Bank of Korea sent clearer signals on gold‑allocation intentions earlier this month.
The bank stated it will set up a new procurement mechanism allowing purchases of domestically‑refined gold in South Korea. This will be the first such measure taken by the Bank of Korea in nearly 60 years.
The Bank of Korea says the move aims to broaden gold‑sourcing channels and support a gradual rise in gold’s share within foreign‑exchange reserves.
This suggests the gold‑ETF purchase may not be a one‑off tactical trade but part of an overall overhaul of its gold‑reserve strategy.
Gold ETFs and Physical Gold Play Distinct Roles
Investing via gold ETFs grants the Bank of Korea gold‑price exposure without directly expanding physical‑gold stockpiles, while lifting asset liquidity and trading flexibility.
This distinction carries special importance for central‑bank reserve management.
Physical gold is generally regarded as a long‑term strategic reserve asset with long holding cycles, mainly serving safe‑haven, credit‑hedging and reserve‑diveRSIfication functions. Gold ETFs act more like liquid financial instruments that can be bought and sold rapidly like ordinary securities, offering central‑banks more flexible gold‑allocation tools.
By re‑entering the gold market through ETFs, the Bank of Korea appears to be seeking a new balance between long‑term strategic reserves and short‑term liquidity.
Global De‑Single‑Exposure Trend May Continue to Benefit Gold
In the broader context, the Bank of Korea’s latest move reinforces the global trend of central‑banks lifting gold‑allocation ratios.
Gold’s strategic value on central‑bank balance‑sheets has risen amid geopolitical uncertainty, mounting global‑debt levels and heightened volatility risks for major reserve currencies.
Should the Bank of Korea further boost physical‑gold and gold‑ETF allocations in future, another major ASIan central‑bank will join the global reserve‑diveRSIfication drive.
For gold markets, central‑bank demand has been one of the key long‑term supports for bullion prices in recent years. As more monetary authorities reassess gold’s role in foreign‑exchange reserves, sustained official‑sector gold buying will likely remain a major underpinning for gold’s medium‑and‑long‑term performance.
韩国央行增持黄金的原因是什么？ 黄金价格下跌的原因有哪些？ 黄金投资的风险有哪些？