Jeonbuk Bank Launches First Bitcoin-Backed KRW Loan Project

Jeonbuk Bank has launched the first KRW loan project in the South Korean banking sector linked to digital assets, initially targeting corporate clients only. This project uses Bitcoin as the sole collateral, and the loan is limited to business operating funds. The bank does not directly hold or manage Bitcoin; instead, a qualified virtual asset service provider is responsible for custody. In the event of default, the bank does not acquire ownership of the virtual assets but instead liquidates the collateral and recovers the debt through procedures such as court auctions, in accordance with the revised Civil Execution Rules. Jeonbuk Bank has completed stress testing and established a valuation system based on the weighted average prices from multiple global exchanges.

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