Bank of Korea Eyes First Physical Gold Purchase Since 2013
The South Korean central bank is considering about one metric ton of domestic gold worth roughly $140 million, but the timing and volume remain undecided.
The Bank of Korea is considering buying about one metric ton of domestically produced physical gold worth roughly $140 million, which would be its first physical-gold acquisition since 2013.
A transaction could be possible around Dec. 14, 2026, when new trading, custody and settlement systems are expected to be ready. The date would make a purchase possible, but it does not confirm that a transaction will occur. The final timing and volume remain undecided.
The gold would come from South Korean producers and was originally intended for export. The Bank of Korea would pay in Korean won through negotiated block trades using infrastructure operated by the Korea Exchange and Korea Securities Depository.
The central bank established the purchase framework in August with LS MnM, Korea Zinc, the Korea Exchange and Korea Securities Depository. LS MnM and Korea Zinc produce about 40 to 45 tons of gold annually as a byproduct of metal refining, with roughly 4 to 5 tons exported each year.
“The actual purchase timing and volume have not been decided,” the Bank of Korea said.
Jung Hee-sub, head of the Bank of Korea’s Reserve Management Group, said the central bank would assess market conditions when producers request a purchase.
“We did not decide the timing of purchases by looking at a specific price. When a company requests a purchase, we decide whether to proceed at that time based on domestic and international gold prices and market conditions,” Jung said.
The Bank of Korea bought 90 tons of physical gold across 2011, 2012 and 2013 before stopping such purchases. It held 104.4 tons of physical gold as of mid-2026.
The central bank also began buying gold exchange-traded funds in the second quarter, acquiring about $250 million in ETF exposure. Those holdings are securities tied to gold prices and do not increase its reported physical-gold holdings.
The next potential step is the expected readiness of the trading, custody and settlement systems around Dec. 14.
