Korea Investment Management said on the 22nd that it has continued to issue guidance to protect investors in the ACE KRX Gold Spot exchange-traded fund (ETF) in connection with the gap between domestic and international gold prices (the kimchi premium). The premium is analyzed to have occurred due to a recent increase in domestic demand for gold investments.
Korea Investment Management has been providing information by updating domestic and international gold prices daily on its official website since on Sept. 26. After the notice, the premium was the largest on the 15th (18.56%), and as of the 21st, it has decreased to 5.25%.
Investors can easily check at what percentage level the domestic gold premium is occurring through the notice. In addition to the website, the same cautions are conveyed to investors through the newsletter offered on the ACE ETF official KakaoTalk channel.
Guidance through external disclosure systems will also continue. Through the Korea Exchange (KRX) disclosure system (KIND) "ETF other market guidance," cautions are provided for investing in the ETF. The guidance analyzes the occurrence and causes so that investors can recognize the price gap in gold and provides daily information on domestic and overseas gold price trends.
This measure is a continuation of consistent investor protection efforts. When a premium occurred in domestic gold prices in February, Korea Investment Management posted domestic and international price comparisons and the premium level in the official website notices from Feb. 6 to March 14 and actively informed investors of the cautions. Afterward, it also compiled frequently asked questions (FAQ) and cautions related to the ACE KRX Gold Spot ETF and provided them on the official website and the ACE ETF official blog.
Nam Yong-su, head of ETF management at Korea Investment Management, said, "As the manager that launched Korea's first gold spot ETF and grew it into the country's largest gold ETF, it is our obvious duty to responsibly provide information to investors," and added, "ACE ETF will continue to think and strive for investors' long-term and stable investments."