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Jeonbuk Bank Launches Bitcoin-backed Loans for Corporate Clients
Jeonbuk Bank, a regional South Korean lender, has introduced the first Bitcoin-backed loan product for corporate clients. Launched on October 12, 2026, the product allows businesses to borrow Korean won using Bitcoin as collateral. Jeonbuk Bank, a subsidiary of JB Financial Group, plans to expand the offering based on market demand and regulatory developments. The loans are restricted to corporate clients and are intended for business operating funds, including payroll, suppliers, and operational expenses. The bank uses a layered valuation process to determine the collateral value, incorporating weighted average prices from multiple global exchanges and stress tests. The product is designed to provide a legal path for recovery in case of default, with the Bitcoin collateral being transferred through court-ordered auctions under revised Civil Execution Rules. Jeonbuk Bank's president has expressed a desire to evolve into a 'crypto bank,' paralleling offerings from global institutions like JPMorgan Chase. The bank outsources custody to qualified virtual asset service providers and routes defaults through the courts, keeping a clear separation between lending and holding crypto directly.