Police have stepped up patrols in areas with high concentrations of jewelry stores as theft crimes targeting these businesses surge nationwide amid soaring gold prices. With gold prices expected to continue rising this year, demand for jewelry store security is also forecast to increase.
According to a Seoul Economic Daily investigation on the 9th, the Jongno Police Station in Seoul recently strengthened its own patrols in areas where major jewelry stores are concentrated. A Jongno Police Station official said, "The suspect in a recent robbery-murder case in Bucheon, Gyeonggi Province, traded the gold items he obtained at a Jongno jewelry store, resulting in three related business owners being booked. Cases of suspects being caught while trying to dispose of stolen goods in the Jongno area have been discovered." The official added, "Jewelry store theft cases have been occurring frequently recently, so we are trying to increase our activities."
The Hyehwa Police Station in Seoul also recently established a "Plan to Strengthen Crime Prevention Activities for Precious Metal Stores." The Hyehwa Police Station plans to strengthen patrol activities, particularly considering that many people are expected to visit precious metal store areas during the Lunar New Year holiday. Hyehwa Police Station Chief Lee Sang-bae stated, "We will mobilize all available personnel to prevent crimes such as theft, phishing, and embezzlement."
This response comes as theft crimes targeting jewelry stores have been rampant nationwide following the recent surge in gold prices. International gold prices have risen approximately 15% since the beginning of this year alone. Although prices have shown roller-coaster movements recently, experts expect international gold prices to rise further. Global investment bank JPMorgan recently evaluated the gold price correction as "a springboard for further gains" and set a target price of $6,300 per troy ounce. Considering that international gold has been trading at around $5,000 per troy ounce on the New York Mercantile Exchange recently, this suggests approximately 30% upside potential remains through the end of this year.
Recent related crimes have become more violent than before and have expanded to include teenagers. In Busan, a man in his 40s who broke down a jewelry store entrance door and stole precious metals was caught by police on the 29th of last month. On the 4th of this month in Seongnam, Gyeonggi Province, a teenager who stole a gold bracelet worth 30 million won during a face-to-face secondhand transaction and fled was arrested by police. On the 15th of last month around 12 p.m., suspect Kim Sung-ho (42) stabbed and killed a female store owner in her 50s, identified as Ms. A, at a jewelry store in Bucheon, Gyeonggi Province, then fled after taking approximately 50 pieces of precious metals worth 20 million won and 2 million won in cash.
Statistics also prove that crimes targeting jewelry stores are increasing along with rising gold prices. According to S-1, crimes targeting jewelry stores increased 6% last year when gold prices roughly doubled compared to the previous year. In 2023, when demand for safe-haven assets increased due to high interest rates and the Russia-Ukraine war, crimes targeting jewelry stores also surged 48% compared to the previous year. Accordingly, demand for security has been increasing recently not only from police but also from private companies. An SK Shielders official explained, "Patrol requests have been increasing recently around the Jongno jewelry store area."
With growing gold demand, more physical gold exchanges are expected to open this year, and demand for police patrols and security companies is forecast to continue increasing. According to ITCen Group, the number of nationwide branches of Korea Gold Exchange, where physical gold such as gold bars can be traded, increased from 102 at the beginning of last year to 110 at the end of the same year. ITCen Group plans to increase Korea Gold Exchange locations by approximately 20% to 123 within this year.