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

South Korean lender Jeonbuk Bank has begun offering won-denominated operational loans secured by Bitcoin collateral to corporate clients.

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Jeonbuk Bank announced the launch of South Korea's first corporate loan program collateralized by Bitcoin on October 12, 2026. The facility allows registered businesses to borrow Korean won to fund operational requirements, such as payroll and supplier invoices. The service is restricted to companies, excluding retail borrowers and speculative uses.

To manage price volatility, the bank calculates collateral value through a weighted average of prices across multiple international exchanges. Bitcoin was selected due to its market capitalization and liquidity, following stress testing under sharp price drop scenarios.

Pledged Bitcoin will not be held by Jeonbuk Bank directly, but managed by external custodians certified under South Korea's Information Security Management System and compliant with the Virtual Asset User Protection Act. In the event of a borrower default, the lender must obtain court authorization before liquidating collateral via public auction.

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