Jun Ji-hye, a reporter at the finance desk of The Korea Times, focuses primarily on economic policy and government agencies, mainly covering the Ministry of Finance and Economy, the Ministry of Budget and Planning, the National Tax Service and the Korea Customs Service. She previously covered financial authorities, including the Financial Services Commission and the Financial Supervisory Service, and earlier worked on the political, city and business desks, reporting on a wide range of issues.
Kbank becomes first lender to launch gold investment service in Korea
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By Jun Ji-hye
Kbank has become the first in the banking sector to launch the service that allows investments in the Korea Exchange (KRX) gold market.
The internet-only bank said Friday that it partnered with NH Investment & Securities to introduce the gold investment service. This will allow users to open a dedicated KRX gold market account and make investments.
Through the investment tab in the Kbank app, customers can now invest in the KRX gold market via NH Investment & Securities.
In May, the bank launched a physical gold purchase service, allowing customers to buy gold bars with free delivery. With the introduction of the new service, the bank has further expanded its range of investment products.
The service fee for Kbank’s gold investment offering is 0.22 percent, including value-added tax, making it five times cheaper than gold-related investment products offered by traditional banks and exchange-traded funds (ETFs). Unlike these products, which are subject to a 15.4 percent dividend income tax on capital gains, customers using Kbank’s service are fully exempt from capital gains, dividend, and interest income taxes on profits.
Purchased gold can be requested and collected at any NH Investment & Securities branch nationwide, in units of 100 grams or 1 kilogram. A handling fee may apply when withdrawing, and taxes of approximately 10 percent of the transaction price will be levied.
“The KRX gold market offers low fees and full exemption from taxes on capital gains, making it a highly competitive investment option,” a Kbank official said. “We will continue to expand partnerships with trusted partners, allowing customers to access a variety of investment products through our app.”
The KRX gold market is a nationally certified spot market for gold. Trading occurs from 9:00 a.m. to 3:30 p.m., allowing buyers and sellers to participate simultaneously, similar to the stock market, ensuring transactions at transparent market prices.
Only gold certified by the Korea Minting, Security Printing & ID Card Operating Corp. with a purity of 99.99 percent is traded, and small investments are possible, starting from as little as 1 gram.
Typically, when political or economic uncertainty increases, the price of gold surges as it is highlighted as a safe-haven asset.