Jeonbuk Bank launches South Korea's first bitcoin-backed loans

Jeonbuk Bank has become the first South Korean lender to offer won loans backed by bitcoin, initially for corporate clients seeking business operating funds. Borrowers pledge bitcoin as collateral held by registered third-party custodians rather than the bank itself, and defaults would be resolved through court-ordered sales of the crypto.

• The service marks the first traditional bank loans collateralized by bitcoin in South Korea.
• Custody sits outside the lender, with enforcement routed through the courts.

No details were disclosed on loan-to-value ratios, interest rates or expansion beyond corporate borrowers.