Since the end of last year, gold prices have risen and a "gold-tech (making money with gold)" boom has swept in, creating shortages of gold bars at banks across Korea. The 10g product priced around 2.6 million won per piece and the 100g product around 26 million won sold out around mid-last month, and only some 1kg products, priced in the 260 million won range per piece, remain.
According to ChosunBiz reporting compiled on the 18th, Woori Bank decided to extend the suspension of sales for 10g and 100g gold bars through June 30. KB Kookmin, Shinhan, and Woori Bank receive and sell gold bars made by domestic smelting corporations LS MnM, but demand is so strong that supply cannot keep up. The only gold bar currently available for purchase at this bank is the 1kg product.
All weight units are sold out at Korea Minting, Security Printing & ID Card Operating Corporation (KOMSCO), which supplies gold bars to banks and others. An industry official said, "Sales of KOMSCO gold bars have been halted through Sept. 30."
Shinhan Bank held a gold bar pre-order sale once a month from January to March. So far it has brought in and sold 800 units of 10g, 2,740 units of 100g, and 530 units of 1kg, and everything is sold out except for some 1kg inventory. Over the three months, more than 210 billion won worth of gold bars were sold.
A Shinhan Bank official said, "The gold bars brought in in January and February all sold on the day sales began. For the gold bars brought in in March, the 10g and 100g products sold out immediately after sales opened." Shinhan Bank plans to conduct a pre-order sale on the 20th of this month for additional gold bars brought in.
Demand for 1kg gold bars is also steady. A banking industry official said, "In January, when gold prices hit a peak, a little over 20 of the 1kg gold bars were sold. Prices then dipped slightly, but about 10 (1kg gold bars) have been selling each month."
According to the Korea Gold Exchange, in mid-April last year, about one year ago, the gold price was around 650,000 won per 3.75g. It then jumped to around 1.1 million won by late January this year and has now come down to around 1 million won.