The Bank of Korea increased its holdings of gold ETFs by more than 40% in the third quarter, taking advantage of lower gold prices for strategic allocation.

⑴ After a 13-year interval, the Bank of Korea resumed its gold investment strategy in the second quarter. In the third quarter, it increased its holdings in a gold exchange-traded fund (ETF) by more than 40%, buying in as the gold price declined. This move is part of a plan to enhance the mid- to long-term allocation to gold. ⑵ At the same time, the Bank of Korea is expected to advance relevant preparations for the procurement of domestically sourced physical gold by the end of the year. ⑶ According to the Bank of Korea's third-quarter 13F filing submitted to the U.S. Securities and Exchange Commission on the 15th, as of the end of September, the bank held 956,869 shares of the US-listed SPDR Gold Trust, with a portfolio value of $364.41 million, equivalent to approximately 488.3 billion Korean won. ⑷ Compared to the 679,765 shares held at the end of the second quarter, the bank increased its holdings by 277,104 shares, an increase of 40.8%, with the position's market value rising 45.5% from $250.41 million. ⑸ The increase in market value outpaced the increase in holdings. This is because the rise in gold prices pushed up the ETF's market price, combined with the impact of new purchases, meaning that not all of the $114 million increase in value came from additional gold purchases. ⑹ On August 25, the international gold price soared to $4,658.59 per ounce at close, then continued to decline, reaching $3,884.77 per ounce on the 13th, a drop of 16.6% compared to August 25.