The country now ranks 40th in terms of gold reserves as the central bank bought more of the precious metal to diversify the country's foreign exchange reserves.

The World Gold Council said Korea's gold holdings have reached 70 tons, which was valued at nearly US$3 billion as of the end of August. This accounts for just under 1 percent of the country's total foreign reserves of more than $300 billion.

The Bank of Korea bought 16 tons of gold in July, its third purchase of the precious metal since the central bank bought gold for the first time in 13 years in July 2011.

The U.S. was the world's largest gold holder with more than 8,000 tons, followed by Germany with just over 3,000 tons.