Korea Jeonbuk Bank launched a Korean won loan program secured by Bitcoin

According to South Korea's "Daily Economy," JB Financial Group's Jeonbuk Bank has launched the first Korean banking loan project linked to digital assets. Initially, it is aimed at corporate clients, using Bitcoin as the sole collateral, with the loan purpose limited to business operating funds.

The bank does not directly hold or manage Bitcoin; instead, it is stored by qualified virtual asset service providers. In the event of default, the bank does not acquire ownership of the virtual assets but recovers its claims by liquidating the collateral through court auction and other procedures, according to the revised "Civil Execution Rules." Currently, Jeonbuk Bank has completed stress testing and established a valuation system based on the weighted average prices from multiple global exchanges.