Bank of Korea buys gold assets for the first time in 13 years, may continue to increase holdings subsequently

TechFlow reports that on August 13, the Bank of Korea purchased gold-related assets for the first time in 13 years to hedge against geopolitical and economic uncertainties. According to a document submitted to the U.S. Securities and Exchange Commission, the Bank of Korea held 679,765 shares of SPDR Gold Shares as of the end of the second quarter, valued at approximately $250 million. The document shows that three months ago, the bank did not hold any shares of the world's largest physical gold-backed ETF. The Bank of Korea stated that this investment marks its first purchase of gold-linked assets since 2013. This purchase will not increase the bank's official gold reserves because gold ETFs are classified as securities and are part of the foreign exchange reserves.

Choi Kyuho, an economist at Hanwha Investment & Securities, said: "The Bank of Korea's current allocation ratio to gold is quite low. From the perspective of aligning with global standards, the Bank of Korea still has room to purchase more gold. I believe they will gradually increase their gold holdings." (Jin10)