Korean courts plan to exclude debts arising from stock or cryptocurrency investments from liquidation calculations

DeepFlowTech · 2026-03-10T00:17:44+00:00

The Korean court will implement new guidelines to exclude debt from stock and cryptocurrency investments from liquidation to reduce the burden on debtors. This move addresses household debt issues, and the government hopes to control debt growth, with pilot programs already underway in some city courts. This has also raised concerns about the protection of cryptocurrency investors.

DeepFlowTech

2026-03-10 00:17:44

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Deep Tide TechFlow News, March 10 — According to Dlnews, the Korean courts plan to adopt new guidelines to exclude debts incurred from stock or cryptocurrency investments from liquidation calculations, thereby reducing the total amount debtors need to repay to creditors during personal restructuring procedures. The new regulations will be implemented this month in courts in Daejeon, Daegu, and Gwangju.

This is the latest measure by the Korean government to address debt issues. By 2025, the country’s household debt-to-GDP ratio has risen to 92%, with the government promising to keep household debt growth below 3.8%. Suwon and Busan courts have begun classifying some losses from cryptocurrency and stock market investments as “general property” losses rather than “speculative debt.” Seoul Bankruptcy Court Judge Lee Seok-jun called in 2024 for the government to establish more regulations to protect cryptocurrency investors. The Daegu Restructuring Court stated it would punish any debtor who “deliberately conceals” cryptocurrency purchases and “disguises failed investments.”

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