Jeonbuk Bank, a subsidiary of JB Financial Group, has become the first bank in South Korea to offer won-denominated loans backed by bitcoin. The product is initially limited to corporate customers seeking working capital, with bitcoin as the sole eligible collateral. The bank does not directly hold the bitcoin, which is instead held by a specialized custodian registered under Korea’s Act on the Reporting of Specific Financial Information. In the event of default, the assets are liquidated through court-ordered procedures and the proceeds are used to recover the loan. This initiative follows the « Crypto Bank » vision outlined by the bank’s president, Park Chun-won.
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