The Bank of Korea is considering resuming gold purchases for its national reserves, marking what could be the institution’s first acquisition of the precious metal since 2013. The move, discussed by Heung-Soon Jung, Director of the Reserve Investment Division, during the LBMA Precious Metals Market conference in Kyoto, reflects a potential shift in South Korea’s reserve management strategy amid global economic uncertainty.

Jung stated that the central bank plans to assess additional gold purchases from a medium- to long-term perspective, closely monitoring market conditions, exchange rate developments, and the composition of the country’s reserves before making any final decision.

South Korea currently holds 104.4 tonnes of gold, ranking 41st globally according to the World Gold Council. Its last accumulation phase took place between 2011 and 2013, when the bank added a total of 90 tonnes. At the time, the move drew domestic criticism following a subsequent decline in gold prices, prompting a long hiatus from the market.

The renewed interest in gold comes as central banks worldwide continue to diversify away from dollar-denominated assets. In the first half of 2025 alone, 23 countries expanded their gold reserves, with Poland, Kazakhstan, Turkey, China, and the Czech Republic among the leading buyers. Global central bank demand is projected to approach 900 tonnes by the end of the year, underscoring gold’s rising role as a strategic asset amid inflationary pressures and weakening currencies.

Source: Reuters