South Korean Courts to Exclude Crypto Debts from Liquidation Calculations

South Korean courts are set to implement new rehabilitation guidelines that will exclude certain cryptocurrency investment debts from liquidation calculations. According to NS3.AI, this decision comes as the country's household debt-to-GDP ratio is projected to reach 92% by 2025. Three new rehabilitation courts in Daejeon, Daegu, and Gwangju will be responsible for applying these guidelines, which aim to reduce the repayment burden on debtors by excluding stock and cryptocurrency investment debts. This move follows previous debt relief measures for 269 crypto traders and has raised concerns about potential moral hazards. Despite these concerns, the courts have assured that they will carefully screen cases to prevent abuse of the new guidelines. The changes are part of broader efforts to address the growing issue of household debt in South Korea.