Gold Bars Sold Out as Prices Soar... Korea Minting and Security Printing Corporation Also "Halts Sales"

Supply Blocked at Commercial Banks... Sales Suspension Imminent

Due to a surge in demand for gold, a shortage has occurred, leading the Korea Minting and Security Printing Corporation to halt the sale of gold bars. The suspension of sales by commercial banks is also imminent.

According to the financial sector on the 12th, the Korea Minting and Security Printing Corporation announced the suspension of gold bar sales at its online and offline outlets and 13 financial institution consignment sales outlets the previous afternoon. This is due to a surge in demand for gold as uncertainties such as inflation and economic recession increase.

The corporation explained, "Despite efforts to ensure stable supply, it has been difficult to respond to the soaring demand," and added, "We will strive to resume sales as soon as the gold raw material supply market stabilizes."

With the Korea Minting and Security Printing Corporation halting supply, KB Kookmin Bank also decided to suspend gold bar sales from today. Although KB Kookmin Bank also procures gold bars from the Korea Gold Exchange, this has also been challenging.

A representative from KB Kookmin Bank stated, "We preemptively decided to suspend sales as we judged that a steady supply of quantities was not possible." Hana, Woori, and NongHyup Banks have decided to receive gold bars through the Korea Gold Exchange. However, it is uncertain when the supply from the Korea Gold Exchange might be interrupted.

The Korea Gold Exchange has already suspended the sale of 10g and 100g gold bars since November last year. Currently, 1kg gold bars can be ordered, but delivery is known to take more than two weeks.

Shinhan Bank has decided to continue selling gold bars with preemptively secured inventory. Shinhan Bank procures gold bars not only from the Korea Gold Exchange but also from non-ferrous metal material company LS MnM. Shinhan Bank, which holds 65% of the bank gold bar sales market, is understood to have preemptively secured gold bar quantities.

The demand for gold, a safe asset, is increasing explosively. As of the end of January, the gold banking balance of major domestic banks (Kookmin, Shinhan, Woori) was 835.3 billion won, an increase of 268.5 billion won (47.4%) compared to 566.8 billion won in the same period last year. Gold banking is a gold-related financial product operated by banks.

The sales performance of gold bars by banks also rose vertically. Last year, the gold bar sales volume of Kookmin, Shinhan, and Hana Banks was 1,243kg, a 92.9% increase compared to 644kg the previous year. The sales amount of gold bars also increased from 51.5 billion won to 137.7 billion won, a 167.4% increase.

Oh Se-seong, Hankyung.com reporter sesung@hankyung.com