Since late last year, gold prices have risen and a "gold investing" boom has led to shortages of gold bars at commercial banks. The 10g product, priced around 2.6 million won per bar, and the 100g product, around 26 million won, sold out around mid-last month, leaving only some 1kg bars, priced in the 260 million won range per bar.
On the 18th, a compilation of reporting by ChosunBiz found that Woori Bank decided to extend the sales suspension of 10g and 100g gold bars through June 30. KB Kookmin, Shinhan, and Woori Bank receive and sell gold bars made by domestic refiner LS MnM, but demand has outstripped supply. At this bank, the only gold bar currently available for purchase 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 are suspended through Sept. 30."
Shinhan Bank held a gold bar pre-order sale once a month from January to March. So far, it has imported and sold 800 units of 10g, 2,740 units of 100g, and 530 units of 1kg, and except for some 1kg stock, everything is sold out. In three months, more than 210 billion won worth of gold bars were sold.
A Shinhan Bank official said, "The gold bars brought in during January and February all sold out on the first day of sales. For the gold bars brought in in March, the 10g and 100g products also sold out immediately after sales began." Shinhan Bank plans to hold another pre-order sale on the 20th for additional gold bars brought in this month.
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 units of 1kg gold bars were sold. Prices have edged down since, but about 10 units (of 1kg gold bars) are selling each month."
According to the Korea Gold Exchange, around mid-April last year, about a year ago, gold was around 650,000 won per 3.75g. It then jumped to around 1.1 million won by late January this year, and has since eased to around 1 million won.