Bank of Korea Starts Gold Buying Program on Monday, First Purchases Since 2013

According to the Bank of Korea, on Monday, the central bank started buying spot gold exchange-traded products and established a framework to purchase domestically produced gold in the near future. The purchases mark the first time South Korea has bought gold since 2013.

Under the announced framework, the Bank of Korea will work with the Korea Exchange, Korea Securities Depository, and domestic producers LS MnM and Korea Zinc, which together produce an estimated 4 to 5 metric tons of gold annually for export. According to Jeong Hee-sup, head of the Reserve Management Group, the central bank plans to gradually increase its gold holdings according to medium- and long-term needs rather than make large purchases all at once.