Courts in Daejeon, Daegu, and Gwangju will exclude debts from crypto or stock investments when calculating bankruptcy repayments, marking a shift in how South Korea handles financial distress amid soaring household debt.
South Korea has launched new rehabilitation courts in Daejeon, Daegu, and Gwangju, which will exclude debts from crypto and stock investments when calculating bankruptcy repayments. The policy aims to alleviate household debt, which has reached 92% of GDP in 2025, though concerns about moral hazard have been raised.