S. Korea holds less gold than other major economies: report

SEOUL, Aug. 6 (Yonhap) -- South Korea has a relatively smaller amount of gold
than other major economies, a report showed Thursday, raising concerns about
whether it should increase holdings of one of the safest investment assets amid a
protracted global slowdown.
According to the report by the Ministry of Strategy and Finance, South Korea's
gold holdings amounted to 14.3 tons at the end of June, the 56th-largest among
the 103 countries and organizations recently surveyed by the World Gold Council
(WGC).
The London-headquartered WGC is an international not-for-profit organization that
provides investors around the world with key information about gold.
The United States topped the WGC list with 8,133.5 tons of gold holdings,
followed by Germany with 3,412.6 tons. The International Monetary Fund ranked
third by holding 3,217.3 tons of gold with Italy and France ranking next with
2,451.8 tons and 2,450.7 tons, respectively, the report showed.
Gold accounts for only 0.2 percent of South Korea's foreign reserves, which were
worth over US$200 billion at the end of June, according to the report. The figure
is far lower than the average of 10.1 percent for those surveyed. Hong Kong,
Chile and Fiji were among the few economies whose gold holdings were smaller than
South Korea's.
"As gold prices have been rising recently, there are a growing number of voices
inside the government saying we should increase our gold holdings in the foreign
reserves," a South Korean government official said, asking not to be named. "(The
government) is now weighing whether to purchase additional gold by closely
monitoring moves by other countries."
kokobj@yna.co.kr
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