South Korea’s Mints have supply restrictions | Real Time Headlines

South Korea’s state-owned mint is fighting a shortage of gold bars amid strong demand for precious metals.

Korean Foundry and Safety Printing Company (KOMSCO) responsible for the production and distribution of various safety products Suspend sales of gold bars last month.

Under the notice’s Google Translation on its website, Komsco will be suspended due to issues in purchasing raw materials supply. Mint usually Gold bars provided To South Korea’s commercial banks, shops and online shopping malls.

Vending machine It is reported Local mediaAs consumers scramble to buy safe haven assets.

“The sudden surge in gold demand in South Korea has caused South Korea’s banks to temporarily suspend sales of gold bars at Komsco’s request because the country does not have enough gold bars to meet local demand,” said Robin Tsui, a global consultant at Apac Gold Strangtion.

Industry observers told CNBC that demand is largely driven by retail investors, many of whom piled up in assets, is a hedge against domestic political turmoil and concerns about economic and geopolitical uncertainty arising from tariffs by U.S. President Donald Trump.

South Korean President Yoon Suk Yeol is currently awaiting a verdict for impeachment after he announced martial law on December 3.

The MPs voted impeach Acting President Han Duck-soo fell into new political turmoil late last year. South Korea’s second acting president is second only to Choi Sang-Mok Obstacles the efforts to arrest Yuan.

South Korea’s domestic turmoil corresponds to Trump’s return to the White House and with the prospect of an escalating trade war.

Ray Jia, head of research at the World Gold Council, said Gold’s hedging of local currencies led to “fast depreciation” won by South Korea, especially in the last quarter of 2024, which led to higher demand.

LSEG data shows that bar and coin investment in South Korea soared 29% to 5.9 tons in the fourth quarter of last year.

Meanwhile, market observers told CNBC that South Korea’s stock market is not too exciting for local investors.

“If you are worried about your currency depreciation, turn to gold. If you are not confident in the stock market, you turn to gold.”

According to South Korea’s benchmark, KOSPI, has climbed 2% since December 3, but the index has 224.88 billion won ($155.9 million) among individual investors between December 3 and March 5. Stock Exchange data. This is in contrast to the 10% increase in spot gold prices during the same period.

“The top returns of gold for domestic stocks have prompted greater demand for gold,” said TSUI, a global consultant in the State Street.

In recent months, the U.S. has strong demand for gold Redirect gold bars to several countries Prepare for Trump’s tariffs on Canada and Mexico when traders try to store them.

“The gold area led by London is in short supply, but now it is South Korea, because metals are going to the United States, so the supply of these markets is smaller.”

A complex factor is traders looking to transfer gold to the United States Most are delivered through kilogram rodsusually only available in selected regions in Asia and the Middle East.

“Korean refineries and wholesalers may get a call and say, ‘We will buy all your stock at a good premium, post it on the plane and send it to New York,” said John Reade, an Asian market strategist at the World Gold Council.

Furthermore, higher power is a larger target for production, which is usually accepted by COMEX warehouses, and may prompt refineries to switch to production of these larger shelves and to freight, TSUI said.