Bank of Korea ‘Under Pressure’ to Buy Gold, Oh Says

The Bank of Korea, which has shunned adding gold to foreign-exchange reserves, is “under pressure” to consider purchases as the global economy worsens and the price advances, Shinhan BNP Paribas Asset Management Co. said.

“Given that central banks in India, Russia and China have bought gold for defense, the Bank of Korea can’t help but feel under pressure to consider purchases for diversification,” said Oh Kyu Chan, Seoul-based head of the overseas fund of funds team at Shinhan BNP, which operates Korea’s biggest gold fund. Kang Sung Kyung, a senior official at the bank’s reserve-management department, had no comment today on plans for gold purchases.