South Korea’s mint has supply restrictions

South Korea’s state mint fights a lack of a gold bar against a reliable demand for precious metal.

Korea, separated by the Print and Security Corporation (Komsco), which is responsible for the production and distribution of different security products, In the suspended sales of gold bars Last month.

Komsco attributed to suspension of raw material purchase issues, reports on its site reports. Mint is usually supplies bars of ingots to commercial banks, shops and online trading centers.

Trading machines In the capital of Seoul, as reported Local media media.

“The sudden surge of demand for gold in South Korea has led to Korean banks temporarily suspend the sale of gold groups at the request of Komsco, since the country lacks gold bars to meet local demand,” said Robin Tsui, Apac Gold Global Strette Global Advisors strategists.

Demand is largely due to retail investors, and industry observers reported CNBC, and many entered an asset as hedge against internal political upheaval and the problems of economic and geopolitical uncertainty caused by US President Donald Trump tariffs.

South Korean President John Suka Yeal is currently awaiting the impeachment sentence after his short -term martial law on December 3.

Legislators also voted pich Acting President Khan Dak-S at the end of last year, immersing the country into a new political turbulence. The second president, who performs South Korea’s duties after Hana, Choi Sang Mock, collided with some opposition from the public over what they see as actions impedes the efforts to delay Yoon.

South Korea’s internal shock corresponded to Trump’s return to the White House and with him the prospect of escalation of the trade war.

The proven hedging of gold against the depreciation of the local currency led to the increase of demand against the background of the “rapid depreciation” of the Korean victory, especially in the last quarter of 2024, said Ray Jia, the head of the research work in the World Council.

Investments in Barry and Coins in South Korea rose 29% in the fourth quarter of last year to 5.9 tons, the data given in the world gold, which coincided with 11% depreciation of the Korean victory for the US dollar during the time, showed LSEG data.

Meanwhile, the market observers reported CNBC that the South Korean stock market was not too exciting for local investors.

“If you are concerned about the devaluation of your currency, you go to gold. If you are not sure about your stock market, you moved to gold,” said Bernard Dahda, NATIXIS precious metals.

While South Korea’s benchmark has registered 2% rise from December 3, the index has an outcome of 224.88 billion ($ 155.9 million) among individual investors between December 3 to March 5, reports Data of the Stock Exchange. This contrasts with 10% profits in the price of gold at the same period.

“The highest profitability of gold over domestic stocks has led to greater demand for gold,” said Tsui State Street Global Advisors.

In recent months there has been a strong demand for gold in the US Redirect bullion from several countries As traders try to accumulate it in preparation for Trump tariffs in Canada and Mexico.

“There is a regional gold deficit led by London, but now also South Korea, because metal goes to the US, and therefore less supplies are in these markets,” said the MKS Pamp Strategy head.

A complicated factor is that traders hope to move gold to US depositors COMEX largely make deliveries through kilogramswhich are usually available only in individual regions of Asia and the Middle East.

“Korean refineries and wholesalers probably called and said,” We will buy you the whole stock on a good premium, glue it to the plane and send it to New York, “said the market of the strategist of the Asian and Europe Council.

In addition, a higher incentive to produce large kilobars, which are usually taken at the COMEX warehouses, can cause refineries to switch to these large shipments instead, Tsui said.