South Korea is experiencing a shortage of gold bars. The national mint (KOMSCO) halted sales last month because it cannot obtain sufficient raw materials, and even Seoul’s gold vending machines have reportedly sold out.
The surge in demand reflects investors seeking a safe haven amid political uncertainty. Domestic politics have been turbulent: President Yoon has faced impeachment proceedings, and the resulting interim leadership has generated controversy. At the same time, international developments — including the return of Donald Trump to the U.S. presidency and renewed concerns about trade tensions — have heightened risk aversion among retail investors.
Currency pressure has helped drive the shift toward gold. As the Korean won declined roughly 11% against the U.S. dollar in late 2024, demand for gold rose sharply, with investment volumes increasing by about 29%. Many individual investors have moved away from South Korean equities after disappointing returns, directing funds into gold as a perceived store of value.
The local shortage is compounded by global flows. Some supplies appear to be redirected to the United States as market participants anticipate potential tariffs and other trade actions, creating further pressure on available bullion in South Korea. Together, these domestic and international factors have combined to tighten supply while boosting demand, leaving consumers and smaller investors facing limited options to buy physical gold.