Seoul: The Bank of Korea (BOK) announced that it holds over US$250 million in a gold exchange-traded fund (ETF) listed on the U.S. stock market, marking its first gold investment in 13 years.

According to Yonhap News Agency, the BOK disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it possessed 679,765 shares of the SPDR Gold Trust. This fund is one of the most actively traded gold ETFs in the United States, with a valuation of $250.4 million at the close of the second quarter.

Gold ETFs allow investors to gain exposure to gold price fluctuations without the necessity of holding the physical commodity. The BOK did not specify when the ETF was acquired, but the stake was absent from its first-quarter filing.

The SPDR Gold Trust was recently traded at approximately $400, having risen from a low of $360 the previous month. This investment marks the first time since 2013 that the South Korean central bank has ventured into gold, following a purchase of 20 tons that year.

Classified as foreign securities, gold ETFs contribute to the nation's foreign reserves. In a related development, the BOK has also outlined plans to procure gold produced within the country to diversify its reserves and protect against geopolitical and inflationary threats.