With gold prices soaring, gold passbooks (gold banking) and gold bars are selling like hotcakes. The banking sector's gold banking balance topped 1.2 trillion won for the first time ever, and gold bar sales so far this year have more than doubled last year's.
According to the banking sector on the 14th, as of 11th the gold banking balance at KB Kookmin, Shinhan, and Woori Bank totaled 1.2367 trillion won. That is an increase of 97.4 billion won in 11 days compared with the end of Aug. (1.1393 trillion won), and it has swelled by 454.5 billion won so far this year.
Gold banking is a product that allows customers to buy and sell gold through a passbook account. The gold banking balance at the three banks stayed in the 500 billion–600 billion won range from 2023, then began to surge in the second half of last year and, in March this year, topped 1 trillion won for the first time.
Gold banking has gained popularity because the price of gold, a safe-haven asset, has risen sharply amid the fallout from U.S. tariff uncertainty. The international gold price last week surpassed $3,600 per ounce on a spot basis for the first time ever. Domestic gold prices are also on a steady rise. According to the Korea Exchange, on the KRX Gold Market on 12th, a 1-kilogram gold spot finished the transaction at 165,100 won per gram. That is up 29.1% from the end of last year.
Gold bar sales are also on the rise. At the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—gold bar sales from 1st to 11th of this month totaled 37.317 billion won. That is a level similar to the sales for all of Aug. (37.375 billion won).
Cumulative gold bar sales this year stand at about 362.8 billion won, already 2.2 times last year's (165.4 billion won). Monthly gold bar sales surpassed the 10 billion won range in May last year, then stayed in the 10 billion–20 billion won range before surging to 88.293 billion won in Feb. this year.