Jeonbuk Bank Becomes First South Korean Lender to Offer Bitcoin Backed Loans
The limited program lets corporate borrowers pledge Bitcoin through registered custodians while Jeonbuk Bank keeps lending and custody functions separate.
- On Monday, October 12, 2026, Jeonbuk Bank launched South Korea's first corporate loan program allowing businesses to borrow Korean won using Bitcoin as collateral, providing financing without the bank taking direct ownership.
- Operating under South Korea's banking regulations, the product follows amendments to civil enforcement rules effective October 1, which establish procedures for banks to liquidate claims through court-supervised asset sales.
- Jeonbuk Bank developed proprietary pricing standards using a weighted index of global exchange prices to determine collateral value, while custody arrangements remain separate, handled by registered virtual asset service providers.
- Digital division vice president Jung Sang-hoon described the service as applying traditional lending systems to crypto without requiring direct asset ownership, reflecting President Park Chun-won's strategy to build crypto capabilities.
- JPMorgan Chase and Swiss bank Sygnum offer similar institutional lending products, and Jeonbuk Bank plans to review operating experience before expanding eligible assets or loan purposes based on future market demand.
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Jeonbuk Bank becomes first South Korean lender to offer Bitcoin backed loans
South Korea’s Jeonbuk Bank has introduced the country’s first bank issued won loans backed by Bitcoin, allowing corporate customers to use their cryptocurrency holdings as collateral for business financing. According to an October 12 report by local news outlet Edaily,…
Jeonbuk Bank, a subsidiary of JB Financial Group (175330), has launched the first digital asset-linked won loan in the domestic banking sector. Initially, the service will be implemented on a limited basis targeting corporate clients, exclusively for Bitcoin, for the financing of business operations; however, in the future
Korea's Jeonbuk Bank (Jeonbuk Bank) has executed loans in won using Bitcoin (BTC) as collateral for corporations. The Korean media Edaily (Edaily)... The post South Korea's Jeonbuk Bank implements the first bitcoin-backed won loan from a domestic bank = report first discussion on NADA NEWS (NADA NEWS).
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