KRX Gold Market Surpasses 4 Trillion KRW in Cumulative Trading Volume Through First Half of This Year

[Asia Economy Reporter Song Hwajeong] The trading value of the KRX Gold Market in the first half of this year increased by nearly 14% compared to the previous year, surpassing a total cumulative trading value of 4 trillion KRW for the first time since the market's establishment.

According to the Korea Exchange on the 15th, the average daily trading volume and trading value of the KRX Gold Market in the first half of this year were 126.2 kg and 8.26 billion KRW respectively, marking increases of 19.4% and 13.8% compared to the previous year. The cumulative trading value for the first half of this year reached 1.016 trillion KRW, pushing the total cumulative trading value since the market's inception beyond 4 trillion KRW. The annual cumulative trading values were 44.8 billion KRW in 2014, 93.8 billion KRW in 2015, 205.4 billion KRW in 2016, 256.9 billion KRW in 2017, 214.9 billion KRW in 2018, 591.9 billion KRW in 2019, and 1.8013 trillion KRW in 2020. The cumulative trading volume for the first half of this year was 15.5 tons, which, if all withdrawn as 1 kg gold bars stacked vertically, would be approximately 5.9 times the height of the Yeouido 63 Building (289 m).

As of the end of last month, the price per gram in the KRX Gold Market was 64,120 KRW, a 3% increase from this year's low point (62,300 KRW), and a 51.5% rise compared to the end of 2014, the year the market was established (42,330 KRW).

Looking at the trading proportions by investor type, individuals accounted for 50.1%, down 10.4 percentage points from the previous year. Physical businesses accounted for 34.4% (up 12.9 percentage points), and institutions 15.5% (down 2.5 percentage points), showing a decrease in the proportions of individuals and institutions.

Since its establishment in 2014, the KRX Gold Market has grown at an average annual rate of 82% based on trading value, expanding the market size 34 times in six years. This growth rate is high even compared to over-the-counter markets and major overseas exchanges.

The factors contributing to the growth of the KRX Gold Market include ▲low transaction costs ▲ease of trading ▲free storage and withdrawal. The KRX Gold Market offers tax benefits for on-exchange trading and allows trading at relatively low fees compared to other markets. There is no tax on capital gains from trading in the KRX Gold Market, and value-added tax is exempted for on-exchange transactions. Additionally, trading is safe and convenient through securities firms, similar to stocks. Currently, 10 securities firms participate, including KB Securities, NH Investment & Securities, Daishin Securities, Mirae Asset Daewoo, Samsung Securities, Shinhan Financial Investment, Yuanta Securities, Kiwoom Securities, Hana Financial Investment, and Korea Investment & Securities. Gold purchased in the KRX Gold Market is safely stored at the Korea Securities Depository and can be freely withdrawn when needed. In contrast, over-the-counter markets do not allow storage, and Gold Banking (accounts) incur a cost of about 2.7 million KRW per 1 kg.

An exchange official stated, "With the expansion of global economic uncertainties, the importance of safe assets is highlighted, and the tendency to recognize gold not as a precious metal but as a safe asset investment tool is increasing." He added, "The exchange will continue to strive to grow the KRX Gold Market into a market where investors can easily access and confidently invest."

This content was produced with the assistance of AI translation services.