Add as a preferred source on GoogleJeonbuk Bank Launches South Korea’s First Corporate Bitcoin Loans
The Korean bank has completed its first loan, with proceeds issued in won and restricted to business operating expenses.
Jeonbuk Bank has launched South Korea’s first corporate lending service backed by Bitcoin (BTC), completing an initial loan as banks expand into crypto-based business finance.
The loans are issued in South Korean won and may be used only for corporate operating expenses. Bitcoin is currently the only accepted collateral, and Jeonbuk Bank does not hold the assets directly. A registered crypto asset service provider provides custody.
If a borrower fails to repay, the bank can seek a court order to sell the Bitcoin and recover the outstanding funds. Jeonbuk Bank, part of JB Financial Group, also conducted stress tests to assess the risks of sharp Bitcoin price declines before selecting the asset as collateral.
South Korea’s revised Civil Execution Rules took effect Oct. 1, setting procedures for attaching and selling rights linked to digital assets. The framework provides a legal process for handling crypto collateral as the bank’s new lending service begins.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.