Despite a nationwide gold bar shortage, sales have surged to four times the level of a year ago, with some products now being offered on a reservation-only basis due to depleted inventory. (Yonhap)
SEOUL, May 7 (Korea Bizwire) — Surging gold prices have ignited a wave of investor enthusiasm in South Korea, pushing gold-linked bank deposits to record highs and triggering a nationwide shortage of physical gold bars.
According to data from major South Korean banks, gold banking balances — which allow investors to buy and sell gold through virtual accounts — surpassed ₩1.1 trillion ($825 million) at the end of April.
This marks a significant jump from ₩1.02 trillion at the end of March and nearly doubles the figure from a year ago, when balances stood at ₩610 billion.
Gold banking has surged in popularity as global uncertainties and inflationary pressures drive investors toward safe-haven assets. Prices in Korea’s KRX gold market stood at ₩148,270 per gram as of May 2, up 16.3% from the end of 2024. International gold prices also hit historic highs last month, briefly crossing $3,500 per ounce in spot trading on April 22.
The rapid growth of gold banking balances and gold bar sales in South Korea from April 2024 to April 2025 (Image supported by ChatGPT)
The bullish sentiment has spilled over into physical gold as well. Combined sales of gold bars by South Korea’s five major banks — KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup — totaled ₩34.87 billion ($26 million) in April, more than quadruple the ₩8.98 billion recorded in April 2024. While slightly down from March’s ₩38.64 billion due to supply bottlenecks, demand remains robust.
The gold bar market faced a temporary freeze earlier this year when soaring demand in February drove monthly sales to nearly ₩88.3 billion, prompting manufacturers such as the Korea Minting and Security Printing Corporation (KOMSCO) and Korea Gold Exchange to halt distribution due to inventory shortages.
As of May, availability is slowly improving. Select banks have resumed sales of 1kg gold bars produced by Korea Gold Exchange and LS MnM. KB Kookmin and Woori are offering only 1kg bars from Korea Gold Exchange, while Shinhan offers a wider range, including smaller weights, though some popular sizes like 10g and 100g are now only available via reservation.
Starting this week, two major banks will resume selling gold bars from KOMSCO. Hana Bank will offer four sizes beginning May 7 (3.75g, 100g, 500g, and 1kg), while Woori Bank will begin sales of five sizes from May 8, including the 375g and 1kg bars.
With no end in sight to global financial volatility, South Korea’s gold rush shows little sign of cooling — and investors, whether digital or physical, are betting big on bullion.
Ashley Song (ashley@koreabizwire.com)
