A South Korean bank is lending against Bitcoin. What happens if BTC falls?

Jeonbuk Bank has begun making won loans to corporate borrowers against Bitcoin held by a specialist custodian. A drop in BTC does not put coins on the bank's own balance sheet. It does, however, test the lender's valuation, collateral monitoring and ability to recover cash through a court supervised sale. Jeonbuk Bank has started a limited Bitcoin linked won lending service for corporate working capital, according to October 12 reporting and a bank spokesperson. A registered crypto custodian holds the collateral, while the bank neither owns nor directly controls the pledged Bitcoin.