In Korea, gold bars are flying off the shelves in convenience stores and vending machines.

In Korea, gold bars are flying off the shelves in convenience stores and vending machines.
In Korea, gold bars are flying off the shelves in convenience stores and vending machines.
  • In addition to ramen and sausages, gold bars have become a popular menu item in South Korea's convenience stores.
  • Since April, CU outlets have been selling gold bars ranging in size from 0.1 gram to 1.87 gram.
  • Since their launch, over 41% of total sales of gold bars have been made by individuals in their 30s.

In addition to ramen and sausages, gold bars have become a popular menu item in South Korea's convenience stores.

CU, the country's largest convenience store chain, has partnered with KOMSCO to sell mini gold bars, which have been extremely popular among customers.

Gold bars ranging in size from 0.1 gram to 1.87 gram have been available for purchase at CU outlets since April. The 1.87 gram bar costs 225,000 won ($165.76), while the 0.5 gram bar is sold for 77,000 won.

According to local news reports, 1 gram bars priced at 113,000 won each were sold out within two days. The bars feature congratulatory messages, birthday wishes, and designs for personality types.

According to CU's commerce phone app Pocket CU, people in their 30s were the most active in purchasing gold bars, accounting for over 41% of the total sales since their launch. People in their 40s made up 35.2% of the sales, followed by those in their 50s at 15.6%. People in their 20s accounted for 6.8% of all sales.

In the first quarter of this year, the demand for bars and coins in South Korea increased by 27% year on year to 5 tons, according to a recent report by the World Gold Council. This represents the sharpest quarterly increase in gold purchases in South Korea in more than two years, the WGC noted.

Customers in South Korea's GS25 convenience store chain can purchase small gold wafers from vending machines, just like other convenience stores are doing.

During economic uncertainty, when the local currency decreases in value, the demand for physical gold jewelry increases among domestic investors seeking safe haven assets, according to Heng Koon How, head of markets strategy, global economics and markets research at UOB.

Gold prices have reached a new high of 456,000 won ($335.3) per 3.75 grams, or 0.13 ounce, according to the Korea Gold Exchange. Meanwhile, the won has weakened by over 5% against the dollar this year, currently trading at 1,358.7 won to the dollar.

A recent trend among a younger generation in Asia is an increase in investment interest, despite gold prices reaching new record highs.

"According to WGC Global Head of Central Banks Shaokai Fan, many Asian economies are facing inflation and financial instability for the first time in a generation. As a result, many young investors are turning to gold as a means of diversifying and safeguarding their investments."

In China, the trend among the youth is to collect 1 gram small beans in glass jars, while the country is also leading consumer demand for bullion and is set to overtake India as the world's largest buyer of gold jewelry in 2023.

In the U.S. last year, one-ounce gold bars priced at close to $1,900 became increasingly popular at retail warehouse giant Costco.

by Lee Ying Shan

Markets