Jeonbuk Bank Issues First Korean Bank Loan Backed by Bitcoin

Jeonbuk Bank has executed a business operating fund loan to a corporate client using Bitcoin as collateral, according to techm.kr. It is the first case of a domestic Korean commercial bank providing a fiat loan against Bitcoin collateral.

The Bitcoin pledged as collateral is held by a specialized digital asset custody company, and Jeonbuk Bank does not directly own or manage the asset. If the borrower defaults, the collateral is liquidated through court enforcement procedures rather than transferred to the bank.

The bank used the revised Civil Enforcement Rules, which took effect on the 1st and specify seizure and sale procedures for virtual assets. Initially, only Bitcoin held by corporate clients was accepted as collateral, and loan use was limited to business operating funds.

The bank launched the product without it being designated as a financial regulatory sandbox case. Specific loan-to-value ratio, interest rate and total loan volume were not disclosed.

Earlier digital asset work

Jeonbuk Bank has been providing real-name verified deposit accounts to virtual asset exchanges, expanding its digital asset business. In October 2025, the bank launched a service on its mobile banking app Sok Bank providing price information from the five major domestic virtual asset exchanges in cooperation with Bonanza Lab. CEO Park Chun-won has proposed a virtual asset collateral loan business since early this year to capture new financial demand.