South KoreaJeonbuk Bank has already executed a bitcoin-backed loan.

It is the first South Korean bank to lend won against crypto, under existing law.

A registered crypto provider holds the bitcoin, and the bank recovers unpaid loans through court-ordered sales under rules effective 1 October.

Loans go to corporate clients only, cover business operating costs, and accept only bitcoin as collateral for now.

How each outlet framed it
CoinDesk
emphasizes that the loan rests on revised Civil Enforcement Rules effective Oct. 1 that set out seizure steps for digital assets

Sources: CoinDesk