South Korean bank Jeonbuk, a subsidiary of JB Financial Group, has become the country’s first commercial bank to accept Bitcoin (BTC) as collateral for won-denominated lending. The service, limited to businesses seeking operational capital, uses a third-party custodian to hold the BTC provided as collateral. This initiative follows amendments to South Korea’s Civil Enforcement Rules that took effect on October 1, establishing procedures for seizing and liquidating virtual asset claims. In the event of default, the bank can recover its funds through court-ordered sales without directly taking possession of the assets. The bank has not disclosed the loan amount, interest rate, or loan-to-value requirements, but stated it had already issued one loan without identifying the borrower.
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