Bank of Korea increases gold-related holdings via ETF purchases

The Bank of Korea has increased its gold-related holdings by purchasing 679,765 shares of the SPDR Gold Trust ETF during the second quarter, according to a U.S. Securities and Exchange Commission filing. By the end of June, the central bank's ETF holdings were valued at ₩354.5 billion ($250.41 million).

Jung Hee-sup, Director of the Bank of Korea Reserve Management Group, stated that the decision to increase holdings was driven by growing interest in gold as a safe-haven asset amid heightened geopolitical risks.

While the SPDR Gold Trust is the world's largest gold-backed fund, holding physical gold in New York and London, the purchase of ETF shares differs from acquiring physical gold. ETFs trade on exchanges like stocks and track gold prices, but they represent paper assets rather than direct ownership of the metal.