Gold Banking Surges as Global Economic Uncertainty Drives Investor Behavior

Tue Mar 18 2025

As of March 18, the gold banking balance of South Korea's major banks, including KB Kookmin, Shinhan, and Woori Bank, is nearing 1 trillion won for the first time. This milestone comes amid a surge in international gold prices, which exceeded $3,000 per ounce on March 14. The rapid increase in gold banking balances reflects a growing trend among investors seeking safe haven assets amidst global economic uncertainties.

The balance of these three banks has risen dramatically from 566 billion won at the end of March last year to 953.4 billion won as of March 14 this year—marking a nearly 70% increase over the past year. Notable jumps were observed from 782.2 billion won at last year's end to 835.3 billion won by January's close and further to 916.5 billion won by February's conclusion. The balance has increased by more than 4% this month alone.

The surge is attributed to factors such as intensified global tariff wars and expectations of a U.S. base rate cut, prompting investors to turn to gold for stability. A spokesperson commented that these developments have heightened economic uncertainty.

In response to soaring demand, KB Kookmin Bank suspended sales of gold bars on March 18 due to supply disruptions, following Woori Bank's suspension on Feb. 14. Meanwhile, Shinhan Bank has begun pre-selling its April stock of gold bars supplied by LS MnM.

The sales volume among top five banks—KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup—increased more than threefold from 27 billion won in January to 88.3 billion won in February but declined following suspension due to supply issues.

While Hana Bank and NH Nonghyup Bank continue selling gold bars through other channels despite not handling gold banking directly; NH Nonghyup offers various bars from Korea Gold Exchange and Samsung Gold Exchange; Hana sells exclusively from Korea Gold Exchange.

Source: https://www.businesskorea.co.kr/