TechFlow News, March 10: According to Dlnews, South Korean courts plan to adopt new guidelines that exclude debts arising from stock or cryptocurrency investments from insolvency calculations, thereby reducing the total amount debtors must repay to creditors under personal rehabilitation proceedings. The new rules will be implemented this month in courts located in Daejeon, Daegu, and Gwangju.
This marks the latest measure by the South Korean government to address mounting debt issues. In 2025, household debt as a share of GDP has risen to 92%, prompting the government to pledge to cap the annual growth rate of household debt at 3.8%. Courts in Suwon and Busan have already begun classifying certain cryptocurrency and stock market investment losses as “general property” losses rather than “speculative debt.” In 2024, Judge Lee Seok-jun of the Seoul Bankruptcy Court called on the government to introduce more regulations protecting cryptocurrency investors. Meanwhile, the Daegu Rehabilitation Court stated it would penalize debtors who “intentionally conceal” cryptocurrency purchases and “disguise them as failed investments.”
