Bank of Korea Considers Gold Purchases later than 12-Year Hiatus Amid Inflation Pressures

The is considering resuming gold purchases for the first time in over a decade, as persistent inflation and currency volatility raise new concerns over the strength of the country’s foreign reserves. The move would mark the central bank’s first major shift in reserve composition since 2013, when it last added to its bullion holdings.

Speaking at a financial forum in Seoul, Heung-Soon Jung, head of the BOK’s Reserve Investment Division, said gold was being reviewed as a “medium- to long-term consideration” for the country’s reserve management strategy according to . He emphasized that the bank was closely assessing its foreign reserve structure, platform rate conditions, and the global gold market before making any decision.

The renewed interest follows a challenging macroeconomic backdrop. Inflation in South Korea has remained stubbornly high despite monetary tightening, while the Korean won has come under sustained pressure against the in recent months. These developments have prompted policymakers to consider gold as a stabilizing hedge in the central bank’s reserves.

The BOK’s previous experience with the metal has made some policymakers wary. Between 2011 and 2013, the bank purchased over 90 tons of gold, just before a prolonged global price slump. That episode led to years of caution regarding further bullion accumulation.

If the BOK proceeds, it would join a growing list of Asian central banks—including China, India, and Singapore—that have expanded their bullion reserves to secureguard against macroeconomic shocks.