UPDATE: Jeonbuk Bank issues first Bitcoin-backed won loan under new rules
CIE News ·
Jeonbuk Bank executed its first Bitcoin-backed corporate loan in Korean won, relying on third-party custody and revised enforcement rules for liquidation.
Jeonbuk Bank has executed an initial Bitcoin-backed loan in Korean won for corporate operating costs, CoinDesk reported. As previously reported, the unit of JB Financial Group rolled out lending services backed by Bitcoin (BTC) collateral held with a registered third-party crypto custodian rather than on the bank's own balance sheet.
The borrower remains unnamed, according to CoinDesk. If a corporate debtor defaults on repayment, the bank is set to recover funds through a court-ordered liquidation of the BTC under revised Civil Enforcement Rules that took effect on October 1, 2026.
Loan rates, specific borrowing caps, and collateral ratios were not disclosed. However, local reporting cited by CoinDesk stated that the lender conducted stress tests on Bitcoin volatility and evaluated margin-call thresholds for major assets prior to launch.