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Korea's gold reserve is entirely abroad. The BOK has no intention of reshoring it.

Published: 06 Apr. 2025, 19:50 Updated: 06 Apr. 2025, 19:56

Gold bars at Incheon International Airport Customs Office in Incheon on March 5. [JOONGANG ILBO]

Amid growing political pressure in Germany to repatriate its gold from the United States, attention is turning to Korea’s own gold holdings — all of which are stored abroad.

The Bank of Korea (BOK) currently holds 104.4 tons of gold — about 8,330 standard 12-kilogram (26-pound) bars. The total includes gold donated during the 1997 national campaign to support the country during the Asian financial crisis.

The BOK keeps all of its gold at the Bank of England in London. In 2023, BOK officials traveled to London and inspected 205 bars, including 200 pre-selected and five randomly chosen on-site. It was the first time in 33 years the Bank of England allowed a Korean team to physically inspect the gold holdings, citing past security concerns.

Korea’s gold had previously been stored in multiple locations, including the Federal Reserve Bank of New York and Swiss investment bank UBS. But in 1990, the BOK consolidated its holdings in London, citing the city’s role as a global hub for gold trading.

“It’s not realistic to manage large quantities of gold locally,” a BOK official said. “We also earn returns by lending the gold.”

Rising global gold prices have prompted calls for Korea to increase its reserves, but the BOK remains cautious. Officials say additional purchases offer little benefit unless triggered by geopolitical instability or foreign exchange volatility.

The BOK last bought gold in 2013 and acquired most of its current holdings between 2011 and 2013. The BOK prefers to hold dollars, citing better liquidity compared to gold or securities.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY KIM CHUL-WOONG [[email protected]]