Jeonbuk Bank Launches South Korea's First Bitcoin-Backed Corporate Loans

Jeonbuk Bank launched South Korea's first won-denominated corporate loan product secured exclusively by Bitcoin on October 12, 2026. The bank does not hold the digital assets directly, instead requiring clients to use qualified virtual asset service providers that maintain mandatory ISMS information security certifications. To manage volatility, the lending model prices collateral using weighted averages across multiple global exchanges and incorporates stress testing medians rather than relying on a single trading venue. In the event of a default, the bank cannot automatically seize the collateral, but must instead recover funds through court-ordered auctions permitted under revised Civil Execution Rules that took effect on October 1. The offering allows South Korean businesses to generate working capital for payroll and supplier operations without liquidating their existing digital asset holdings. "The bank’s president has expressed a desire for Jeonbuk Bank to evolve into a 'crypto bank.'"