"Gold Price, How Far Will It Go?"... Gold Banking Nears 1 Trillion Won Amid Continuous Surge

Gold Banking Balances at KB Kookmin, Shinhan, and Woori Banks Reach 953.4 Billion Won
Nearly 70% Surge Compared to End of March Last Year

As the international gold price surpassed $3,000 per ounce, reaching an all-time high, the balance of gold bank accounts in Korea is on the verge of exceeding 1 trillion won for the first time. With economic uncertainty increasing due to the escalation of the tariff war triggered by Trump, demand for safe-haven assets has risen, leading domestic investors to pour money into gold-related products. Since forecasts suggest that gold prices will continue to rise in the near term, investment activity in gold-related products is expected to continue.

According to the financial sector on the 18th, the balance of gold banking accounts at KB Kookmin, Shinhan, and Woori Banks stood at 953.4 billion won as of the 14th. Hana and NH Nonghyup Banks do not offer gold banking services. Gold banking is a product that allows buying and selling gold through bank account passbooks, and this is the first time the combined balance of the three banks has exceeded 950 billion won.

The combined gold banking balance of the three banks surged nearly 70% compared to 566 billion won at the end of March last year. In particular, it rose sharply from 782.2 billion won at the end of last year to 835.3 billion won at the end of January this year, and 916.5 billion won at the end of February. This month alone, the balance has increased by more than 4%, and if this trend continues, surpassing 1 trillion won soon is considered certain.

The reason investors are flocking to gold investment is the rising gold price, which has exceeded $3,000. On the 14th, April gold futures on the New York Commodity Exchange (COMEX) closed at $3,001.1 per ounce. This is the first time the closing price has exceeded $3,000. The gold futures price once rose to an all-time high of $3,017.1 per ounce. It has increased by about 12.4% this month alone.

An employee is organizing gold bars at the Korea Gold Exchange in Jongno-gu, Seoul.

The shortage of gold bars continues as well. Among the five major banks, only Shinhan, NH Nonghyup, and Hana Banks are currently selling gold bars. KB Kookmin Bank stopped sales on the 18th of last month, and Woori Bank halted sales from the 14th of last month. As a result, the sales amount of gold bars at the three banks amounted to only 14.7 billion won up to the 14th of this month. The sales amount at the five major banks increased more than threefold from 27 billion won in January to 88.3 billion won in February, but sales have noticeably retreated due to supply disruptions and consecutive sales suspensions.

Shinhan Bank began pre-selling April delivery quantities of 10g and 100g gold bars supplied by LS MnM from the day before yesterday. The 1kg gold bars are sold continuously. NH Nonghyup Bank sells gold bars of 3.75g, 10g, 100g, and 1kg from the Korea Gold Exchange, and 37.5g, 187.5g, and 375g gold bars from Samsung Gold Exchange. Hana Bank sells only 1kg gold bars from the Korea Gold Exchange.