An employee lifts up gold bars displayed inside a store in central Seoul on Nov, 13, 2025. (Yonhap)
SEOUL, Nov. 20 (Korea Bizwire) – South Korean retail investors have been scooping up gold exchange-traded funds (ETFs) this month, data showed Thursday, as they searched for safer assets amid a volatile stock market.
Individual investors purchased a net 5.4 trillion won (US$3.7 billion) of ACE KRX Gold Spot ETFs from Nov. 3 until Wednesday, according to the data from Yonhap Infomax, the financial arm of Yonhap News Agency.
Launched in 2021, the investment product tracks the price of the KRX Gold Spot Index, a benchmark index calculated and published by South Korea’s main bourse operator, the Korea Exchange (KRX).
It is the oldest among the five gold-related ETFs traded on the local stock market.
According to the data, retail investors were net buyers of the ACE KRX Gold Spot ETF during the 13-day period, except on Tuesday, when they sold a net 93.4 billion won.
Analysts attributed the recent gold rally to the volatile stock market, which closed down over 3 percent multiple times in recent weeks, on growing concerns of an artificial intelligence (AI) bubble.
Gold is widely considered a safe asset, as its price tends to hold steady, or even appreciate, when the stock market is volatile.
Expectations that the U.S. Federal Reserve will remain dovish next year also increased appetite for gold-related investments, analysts added.
“The Fed is expected to keep an easing stance on its monetary policy next year, as the American economy faces multiple headwinds, including its uncertain job market and inflationary pressures,” said Hwang Byeong-jin, an analyst from NH Investment & Securities Co.
“Gold prices will maintain an uptrend as demand for the precious metal grows from investors and global central banks,” he added.
(Yonhap)
