Bank of Korea Buys $250 Million Gold ETF, First Gold Move in 13 Years

What happened

The Bank of Korea reported holding about 355 billion won ($250 million) worth of gold exchange-traded funds in the second quarter, including 679,765 shares of the SPDR Gold Trust valued at $250.41 million as of the end of June. It is the first time the BOK has invested in gold since buying 20 tons of physical gold in 2013. The central bank also said it plans to buy physical gold, though the timing has not been set.

Why it matters

The move signals that the BOK may expand its gold-related assets going forward, and physical gold purchases could resume as early as this year. Because gold ETFs are counted as part of the country's foreign exchange reserves, this adds a new element to reserve management.