Bank of Korea Makes First Gold Investment in 13 Years via $250 Million ETF

Bank of Korea's First Gold-Linked Investment in 13 Years

The Bank of Korea has opened a new chapter in its reserve management. In a filing with the U.S. Securities and Exchange Commission, the central bank reported holding 679,765 shares of the SPDR Gold Trust at the end of June, a stake worth roughly $250 million, or 355 billion won. That is notable because the bank had no such position at the end of the first quarter, making this its first gold-linked investment since it bought 20 tonnes of physical gold in 2013.

BOK officials said the ETF holding is classified as a security, separate from physical gold, and forms part of the country's foreign exchange reserves. The bank has not touched its physical gold stock since 2013; it remains at 104.4 tonnes. Its reserve management team has also announced plans to purchase domestically produced gold intended for export, though the date for resuming physical purchases has not been fixed and is expected within this year.

The move comes as central banks globally are accumulating gold to hedge geopolitical and economic uncertainty. World Gold Council data shows monetary authorities bought a net 289 tonnes in the second quarter, a record for that period. Hanwha Investment & Securities economist Choi Kyuho said South Korea's gold allocation is still low by global standards, leaving room for further purchases.

Why BOK Is Re-entering Gold After a 104-Tonne Pause

From a First-Quarter Blank to a Second-Quarter Stake

The SEC filing makes clear the purchase happened during the second quarter: the bank held no shares at the end of March and 679,765 at the end of June. The exact transaction date has not been disclosed, so the timeline is inferred from the quarterly holdings. The stake is a starter position rather than a large allocation, but it is a clear statement that Seoul is willing to hold gold exposure in a liquid, tradeable format.

Why BOK Chose an ETF Before Physical Gold

BOK officials were explicit about the distinction. ETF shares give the bank exposure to gold without expanding the physical reserve base, and they can be bought and sold like other securities. Physical gold is managed as a long-term reserve asset. By entering through SPDR Gold Trust, BOK can test the market and add risk-managed exposure while it prepares the operational groundwork for domestic physical buying.

Record Official-Sector Demand Lifts the Context

The decision does not sit in isolation. The World Gold Council reported net central bank purchases of 289 tonnes in the June quarter, the largest second-quarter total on record. Choi Kyuho of Hanwha Investment & Securities argues that Korea's gold share is below global norms, which gives the BOK room to accumulate more. That supports the interpretation that this is the beginning of a phased rebuild, not a one-time trade.

What BOK's Return Signals for Gold and Reserve Policy

For market professionals and reserve watchers, the BOK's return to gold creates a few concrete signals to follow.

• Watch the next SEC filing for evidence of follow-through. The bank held no SPDR Gold Trust shares at end-March and 679,765 at end-June. A larger position in the September or December filing would suggest the $250 million stake is the initial tranche of a broader allocation.
• Track the domestic purchase program separately. BOK has said it will buy domestically produced gold and that physical purchases may resume this year. That would add a new official demand channel for Korean output rather than only offshore ETF exposure.
• Anchor expectations to the 289-tonne Q2 benchmark. WGC data shows central banks made record second-quarter purchases. Hanwha's Choi Kyuho says Korea's share remains low, so further buying is plausible, but BOK has not confirmed amounts or timing.