As global uncertainty continues to rise, the price of gold, often seen as a safe-haven asset, has surged. This has prompted increased interest in gold-related financial products South Korean banks offer.
According to South Korea’s financial sector, the gold banking balance at major banks—KB Kookmin, Shinhan, and Woori—reached 835.3 billion won ($576.51 million) by the end of January. This marked an increase of 268.5 billion won ($185.31 million), or 47.4%, compared to 566.8 billion won ($391.20 million) in January of the previous year. Over the same period, the number of gold banking accounts grew by 9.2%, from 252,332 to 275,424.
Gold banking allows customers to trade gold through accounts without physically holding the precious metal. Transactions can be made in increments as small as 0.01 grams, offering an affordable entry point for smaller investors while eliminating storage concerns. Customers also have the option to withdraw gold in physical form, though this comes with additional fees and a 10% value-added tax (VAT).
Banks’ sales of gold bars have also significantly increased as gold prices rise. In 2024, KB Kookmin, Shinhan, and Hana Banks sold 1,243 kg of gold bars, up 92.9% from 644 kg the year before. The total sales value of these bars skyrocketed by 167.4%, climbing from 51.5 billion won ($35.54 million) to 137.7 billion won ($95.04 million).
According to data from the Korea Exchange, the price of gold per gram exceeded 100,000 won ($96.63) last year, and it has continued to climb sharply, with daily record highs being set. As of February 4, the price had surpassed $96.63 per gram, pushing the cost of one don (3.75 grams) to over 520,000 won ($360).
The ongoing surge in gold prices is driven by growing global economic uncertainty, with consumers increasingly seeking safe-haven assets. Concerns about former U.S. President Donald Trump’s tariff policies have increased fears, driving gold prices to new record highs.