Korea Exchange Launches Spot Gold Market

Mineweb reported that today brought the launch of a spot gold market on South Korea’s stock exchange. Nine brokerages and 49 gold dealers have registered as members.

Black market gold transactions are a big problem for the country, so a key goal of the exchange is to bring some of those deals onto a legal forum.

As quoted in the market news:

‘We expect around 20% of the actual deals to flow into the KRX Gold Market in the future,’ said Gong Do-hyun, operation manager of the KRX Gold Market.  Delivery will be in 1 kilogram bars with 99.99% purity.

‘The KRX Gold Market is a part of the government’s plan to bring the underground economy into the light,’ Yoon Seok-yoon, executive director of the KRX derivative market told the Korea Herald. The KRX plans to exempt member companies from transaction fees until March 2015 to encourage hidden dealers to do business in the open market.

Click here to read the full Mineweb report.