Bank of Korea resumes buying domestic gold after 13 years

The Bank of Korea (BOK) announced it will restart purchases of physical gold produced in South Korea, the first such acquisition since 2013. The central bank will buy the metal through over‑the‑counter transactions in partnership with LS MnM Co., the Korea Exchange (KRX) and the Korea Securities Depository (KSD). LS MnM and Korea Zinc together supply 40‑45 tonnes of gold annually, about 10 % of which is exported. BOK plans to acquire a portion of this export‑bound gold to reduce foreign‑exchange volatility and lessen reliance on U.S. dollars amid geopolitical uncertainty. The purchases will be coordinated with producers on price and volume to avoid disturbing the local market. In the second quarter, BOK also added a modest amount of gold‑backed exchange‑traded funds to its holdings. With 104.4 tonnes of gold, the bank ranks 39th among central banks worldwide.