BOK holds $250 mil. in US gold ETF, 1st gold investment in 13 yrs

Gold bars are on display at Korea Gold Exchange in Seoul's Jongno District, July 1. Yonhap

The Bank of Korea (BOK) said Thursday that it holds more than $250 million worth of a gold exchange-traded fund (ETF) traded on the U.S. stock market, marking its first investment in gold in 13 years.

In a filing with the U.S. Securities and Exchange Commission (SEC), the BOK said it held 679,765 shares of SPDR Gold Trust, one of the most widely traded gold ETFs in the United States, worth $250.4 million as of the end of the second quarter.

Gold ETFs provide investors with exposure to gold by tracking changes in the price of the precious metal, allowing them to benefit from gold price movements without owning the physical asset.

The BOK did not elaborate on the exact timing of the ETF purchase, but the holding was not included in its filing at the end of the first quarter.

SPDR Gold Trust was trading at around $400, rebounding from the $360 level last month.

It is the first time in 13 years that the Korean central bank has invested in gold since purchasing 20 tons in 2013.

Gold ETFs are classified as foreign securities and are included in the country's foreign reserves.

Separately, the BOK recently announced plans to purchase domestically produced gold to diversify its reserves and hedge against geopolitical and inflation risks.