Bank of Korea Resumes Gold Allocation After 13 Years

What happened

The Bank of Korea disclosed on August 13 that it held over $250 million in a U.S.-listed gold ETF in Q2 2026. The bank plans to purchase domestic South Korean bullion from LS MNM and Korea Zinc to diversify reserves and hedge against risks.

Why it matters

Dollar assets account for 69.5% of reserves, while gold is only 1.1%. This move addresses structural imbalance amid global central bank net buying trends and aims for a medium-to-long-term strategy.