Jeonbuk Bank Becomes First in South Korea to Offer Bitcoin-Backed Loans
- Jeonbuk Bank has started issuing Bitcoin-backed loans to corporate customers.
- The bank is the first commercial bank in South Korea to accept BTC as collateral for won-denominated lending.
- This service is limited to businesses seeking operational capital, with a specialized custodian managing the collateral.
- Amendments to South Korea’s Civil Enforcement Rules, effective Oct. 1, allow for seizing and liquidating virtual assets in default cases.
- The specific loan amounts, interest rates, and loan-to-value requirements have not been disclosed by the bank.
The introduction of Bitcoin-backed loans marks a significant development in South Korea’s banking sector, enabling businesses to leverage cryptocurrency for operational funding under new legal frameworks.
As Jeonbuk Bank initiates this service amid evolving regulations, it highlights a growing acceptance of BTC within traditional finance systems in the country. (Source)
