The Bank of Korea announced it holds 350 billion won worth of gold exchange-traded funds (ETFs) as of the second quarter of this year.
On August 12, the bank disclosed through a filing with the U.S. Securities and Exchange Commission (SEC) that it owns 679,765 shares of the gold ETF 'SPDR GOLD TR' listed on the local stock market.
As of the end of the second quarter, the valuation stood at $250.41 million (approximately 355 billion won). While the specific timing of the purchases was not mentioned, the bank confirmed it began acquiring overseas gold spot ETFs in the second quarter of this year.
This marks the first time the Bank of Korea has invested in gold since purchasing 20 tons of physical gold in 2013. Gold ETFs are classified as securities separate from physical gold and are included in the foreign reserves.
The bank also plans to purchase physical gold in addition to the gold ETFs. The Bank of Korea's foreign asset management division announced on August 3 that it intends to buy gold produced domestically for export.
This decision comes as central banks in major countries have been increasing their gold reserves amid rising geopolitical risks, highlighting the need to bolster holdings of safe-haven assets. However, the timeline for resuming physical gold purchases remains undecided.
According to the World Gold Council, the Bank of Korea currently ranks 39th among global central banks in terms of gold reserves. Since acquiring 40 tons in 2011, 30 tons in 2012, and 20 tons in 2013, the total gold reserves have remained at 104.4 tons up to this year.
* This article has been translated by AI.
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