South Korea's First Bitcoin-Collateralized KRW Loan Program Launched by Jeonbuk Bank

Odaily News: Jeonbuk Bank has launched the South Korean banking industry's first KRW loan program linked to digital assets. The program initially targets only corporate clients, with Bitcoin as the sole collateral, and loan proceeds are restricted to business operating funds. The bank does not directly hold or manage Bitcoin; custody is handled by a qualified virtual asset service provider. In the event of default, the bank does not take ownership of the virtual assets; instead, in accordance with the revised Civil Execution Rules, it liquidates the collateral through court auction and other procedures to recover the debt. Jeonbuk Bank has completed stress testing and established a valuation system based on the weighted average price across multiple global exchanges.