INTEL: The Bank of Korea is buying physical gold for the first time in 13 years and storing it at home instead of the Bank of England | per Korea Times

What happened

The Bank of Korea began purchasing physical gold, its first acquisition in 13 years, and will store the metal domestically rather than using the Bank of England’s vaults.

Confirmed

Global impact / market context

Holding gold directly gives the Bank of Korea more control over its foreign‑reserve assets, reduces reliance on foreign custodians, and may signal a shift toward diversifying reserves amid global currency volatility, which can affect the value of the Korean won.

Analyst inference

Globally several central banks have increased gold holdings to hedge against currency risks, and the Bank of England traditionally provides storage for foreign gold. Korea’s move reflects a broader push for reserve independence in the current monetary environment.

Analyst inference

What to watch

1. Watch how much gold the Bank of Korea plans to buy over the next year, as larger purchases could further strengthen its reserve buffer and influence market demand. Analyst inference
2. Monitor the Korean won’s exchange rate and inflation trends, because a larger gold reserve may support the currency and provide a hedge if inflation rises. Analyst inference
3. Observe whether other Asian central banks follow Korea’s domestic storage approach, which could shift demand for foreign vault services and affect global gold‑storage fees. Analyst inference

Evidence

• x.com