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How the Covid-19 Crisis Turned Into an Opportunity for Korea’s Gold Market

By Kay Lee, CEO, Wolgok Jewelry Foundation

KAY LEE is CEO of Wolgok Jewelry Foundation, a non-profit organization established in 2009 to support Korea’s gold and jewellery industry. Kay has been working for various multinational communication, marketing, and consulting companies, including 11 years of experience as the country manager for Korea at the World Gold Council.

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Like anywhere else, Korea’s domestic consumer market, including the gold and gold jewellery sectors, was hit by the worldwide Covid-19 pandemic. What we thought was normal became non-normal and the good old past is not likely to be fully restored.

Changing market trends

According to WJRC (Wolgok Jewelry Research Institute), the Korean jewellery market was estimated at US$4.9 billion in 2021, 3% higher from the previous year. The market, hit by Covid-19, saw a decline from the pre-pandemic years but marked a recovery in 2021.

Korea’s jewellery market has been traditionally divided by wedding and non-wedding purchases. General gold jewellery in the non-wedding jewellery market, which includes 84.6% of the total non-wedding market and 67.3% of the total market, recorded US$3.3 billion in sales and led the market recovery. The wedding market, which comprised 20.4% of the total market, has been steady at US$1 billion. However, it might be regarded as a “good defence”, considering the rapidly decreasing number of weddings, due to decreasing wedding age population and the trend to postpone weddings during the pandemic and to stay single or get married at a later age.

Size of Korean Jewellery market

Source: Wolgok Jewelry Research Center, Gallup

One of the most noteworthy changes in the jewellery market during the pandemic is an increase in online jewellery purchases. According to Euromonitor, Korea’s online jewellery market size in 2021 was estimated at US$370 million, an increase of 7.7% from the previous year. Despite the fact that the jewellery market has been highly traditional and rather conservative, this growth rate seems to be relatively significant and proves that the jewellery market is not an exception from the global trend of “untact” market expansion – a South Korean government policy that aims to spur economic growth by removing layers of human interaction from society. The pandemic has pushed the jewellery market further to e-commerce environment and this trend is most unlikely to be reversed, even after the post-pandemic situation.

Similar trends have been monitored in WJRC’s research. Before 2019, online jewellery purchases accounted for about 2–4% only. But, from the first half of 2019, it grew to 9.1% and then jumped to 16.2% in the first half of 2021.

Year-on-year changes in the online general jewellery purchase rate

Source: Wolgok Jewelry Research Center, Gallup

Jewellery imports And exports

In 2021, gold and jewellery recorded US$2.5 billion and US$942 million in imports respectively. In addition, both diamond/gem imports and jewellery exports saw their highest levels since WJRC started its market research in 2012. Exports reached US$353.75 million, an increase of 73.5%, while imports reached US$942.84 million, an increase of 62%. According to Euromonitor, Korea’s luxury jewellery market size is the fourth-largest globally, and is likely to grow further, influenced by “revenge spending from the pandemic” and “flex consumption by the MZ generation”.

Annual jewellery import and export

*Hs Code 7113: Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.
Source: KITA (https://www.kita.net/), Korea

Current online research data service – Jewellery Acquisition Survey

Catching up with the jewellery’s consumer market

Founded in 2009, Wolgok Jewelry Foundation (WJF), a non-profit organisation, has been contributing to the jewellery market by providing market research data, educating future jewellery market leaders, providing marketing consulting, and working with the gold and jewellery industry to deregulate and develop the market. For all these objectives, reliable market data is essential. However, it is also equally or even more important to let the data be fully accessible and utilised by the industry, consumers, media, and various government bodies and organisations.

WJF has been hosting various seminars and publishing research periodicals, newsletters, and reports. However, accessibility and custom-tailored data analysis were not fully available to people who needed data analysis for their own specific requirements when they wanted, due to the limitation of printed materials and physical spaces in the offline programs.

At the start of the pandemic, WJF started to invest in online data analysis service to make its research more widely available and accessible. As a result, WJF online data service was made available and free to everyone. In addition, WJF was assigned as the organisation to participate in the government’s AI learning data development project to spur innovation in the jewellery market. The consumer market is also being diversified. The traditional understanding of the mass market may vanish sooner or later as consumer profiles and expectations are getting more complicated and changing rapidly. In this sense, market and consumer research data are essential raw materials, which gold and jewellery industry must catch up with the consumers for survival. When this science is combined with creative insights, the future of the gold and jewellery industry may find a new opportunity a path forward.

WJF offline programs

KAY LEE is CEO of Wolgok Jewelry Foundation, a non-profit organization established in 2009 to support Korea’s gold and jewellery industry. Kay has been working for various multinational communication, marketing, and consulting companies, including 11 years of experience as the country manager for Korea at the World Gold Council.

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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.