The Bank of Korea Makes First Gold Bar Purchase in 13 Years

BlockBeats News, August 3rd. The Bank of Korea announced on Monday that it will collaborate with LS MnM Company, the Korea Exchange (KRX), and the Korea Securities Depository (KSD) to make its first domestic gold purchase in 13 years through over-the-counter trading. This decision was driven by the increased geopolitical risks, highlighting the importance of diversifying Korea's foreign exchange reserves.

LS MnM and Korea Zinc Company annually produce approximately 40 to 45 tons of gold through smelting by-products, with about 10% being used for exports. The central bank stated that if the relevant companies apply, they will consider utilizing the trading and settlement systems of the Korea Exchange (KRX) and the storage facilities being prepared by the Korea Securities Depository (KSD) to purchase some of the gold intended for export.

The central bank mentioned that it will arrange bulk transactions after negotiating the price and quantity beforehand to limit the impact on the domestic gold price. The new channel is expected to reduce foreign exchange risks since previous overseas purchases were all conducted in US dollars. Additionally, the central bank revealed that it had purchased a small amount of gold ETFs in the second quarter. As of July, its gold holdings remained unchanged at 104.4 tons, while Korea's foreign reserves at the end of June stood at $427.36 billion, including $4.79 billion in gold reserves. (Jinse)