# Bank of Korea gold reserve and ETF acquisition

> Live situation record from CLSTR: https://clstr.news/situations/bank-of-korea-gold-reserve-acquisition
> Updated: 2026-08-27T21:37:36.000Z. Sources: 17. Developments: 4.

The Bank of Korea (BOK) has resumed purchasing domestic physical gold for the first time since 2013 to mitigate foreign-exchange volatility and reduce U.S. dollar dependence. The central bank intends to acquire gold from local suppliers like LS MnM Co. and Korea Zinc through coordinated over-the-counter transactions to avoid market disruption. Currently holding 104.4 tonnes, the BOK ranks 39th globally in gold reserves.

Beyond physical metal, the BOK has significantly increased its gold-related holdings through exchange-traded funds (ETFs). SEC filings reveal the bank purchased 679,765 shares of the SPDR Gold Trust ETF during the second quarter, bringing its ETF holdings to a value of ₩354.5 billion ($250.41 million). Jung Hee-sup, Director of the BOK Reserve Management Group, noted the decision was driven by gold’s status as a “safe-haven asset amid heightened geopolitical risks.” While the bank maintains positions in S&P 500 trackers like VOO and IVV, it has recently reduced holdings in those specific funds.

This central bank activity mirrors broader market trends. In South Korea, private interest has surged, with trading volumes on the KRX gold market rising in early August. Simultaneously, South Korean investors are shifting capital toward overseas assets, with net purchases of U.S. stocks reaching $4.6 billion last month. Globally, demand remains robust; in India, households are increasingly pledging gold rather than selling it, causing recycled gold supply to fall to a low of 19 tons in the second quarter of 2026.

## Timeline

### 2026-08-27: Bank of Korea increases gold-related holdings via ETF purchases

The Bank of Korea purchased over 679,000 shares of the SPDR Gold Trust ETF in Q2, valuing its holdings at approximately $250 million to hedge against geopolitical risks.

2 sources. https://clstr.news/cluster/bank-of-korea-increases-gold-related-holdings-via-etf-purchases

### 2026-08-18: Bank of Korea resumes gold purchases as Indian demand remains high

The Bank of Korea has resumed gold purchases after 13 years, while Indian households continue to drive record demand by pledging rather than selling gold despite high prices.

6 sources. https://clstr.news/cluster/bank-of-korea-resumes-gold-purchases-as-indian-demand-remains-high

### 2026-08-12: South Korean investors shift to overseas ETFs as Bank of Korea resumes gold investment

South Korean investors are shifting capital from domestic to overseas ETFs, while the Bank of Korea has resumed gold investment by purchasing approximately $250 million in gold ETFs.

4 sources. https://clstr.news/cluster/south-korean-investors-shift-to-overseas-etfs-as-bank-of-korea-resumes-gold-investment

### 2026-08-03: Bank of Korea resumes buying domestic gold after 13 years

South Korea's central bank resumes buying locally produced gold after 13 years, using OTC deals with LS MnM, KRX and KSD to curb FX volatility and diversify reserves.

5 sources. https://clstr.news/cluster/bank-of-korea-resumes-buying-domestic-gold-after-13-years

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Cite as: Bank of Korea gold reserve and ETF acquisition. CLSTR, https://clstr.news/situations/bank-of-korea-gold-reserve-acquisition