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

Gate News reports that on March 10, 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 in 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 the household debt growth rate at 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 previously called on the government in 2024 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.”