CONFIRMED: This is based on the official record of the amended Civil Execution Rules (Supreme Court Rule No. 3280) on Korea’s National Law Information Center. Points marked as reported come from CryptoSlate and Korean legal press.
From 1 November 2026, courts in South Korea will have a clear, standard way to freeze, seize and sell people’s cryptocurrency to pay off debts they owe [1].
The Supreme Court made the change by amending the Civil Execution Rules, the rules courts follow when enforcing judgments. The amendment, Supreme Court Rule No. 3280, is dated 12 October 2026 [1].
Why the change?
The official reasons say crypto is “intangible property with monetary value” whose ownership and trading are growing, and that more and more enforcement cases involve it. The rules aim to give all courts the same procedure and make outcomes more predictable (TSN translation) [1].
Crypto held at an exchange
Most new rules (Articles 175-2 to 175-6) deal with crypto kept at an exchange. Legally, what the debtor owns there is a right to have the exchange transfer the coins to them [1].
- Freezing it. A court order attaches that right. The exchange is then barred from transferring the crypto to the debtor, and the debtor is barred from disposing of the right or receiving the crypto [1].
- Finding out what is there. The creditor can ask the court to make the exchange state whether it recognises the claim, what crypto it holds and how much, and whether other creditors have claims or priority [1]. CryptoSlate reports the exchange must answer within a week [2].
- Turning it into money. The court can hand the right to the creditor (an assignment order), order a sale, or use another suitable method [1].
- How it is sold. A sale can be handled by a crypto business, by moving the coins into an account opened for a court enforcement officer and selling them, or by first swapping them into crypto that is easier to cash out [1].
Crypto held directly
Where the debtor holds crypto themselves (Articles 175-7 to 175-11), the court can bar them from disposing of it and order it transferred to an enforcement officer. The seizure takes effect when the officer receives the crypto [1]. CryptoSlate reports that this transfer can happen before the debtor is formally served, which could limit the chance to move coins away [2].
The court can then order the crypto transferred to the creditor’s address once that order becomes final, or sold through a crypto business [1].
Before a judgment, too
The amendment also creates procedures for provisional attachment and injunctions over crypto (new Articles 213-2 and 216-2), so creditors can ask a court to freeze crypto while a case is still going on [1]. There are also rules for returning crypto if an enforcement case is withdrawn or cancelled, and for enforcing security interests over exchange-held crypto [1].
From draft to final rule
The Supreme Court first published a draft on 2 July 2026, with comments invited until 11 August and a planned start date of 1 October, according to Law Times and Yonhap [3][4]. The final rule starts a month later, on 1 November [1].
What this means
- Exchange balances are now clearly reachable. Korean exchanges will have defined duties when a court order arrives: stop transfers, report holdings, and help with sales.
- Pending cases are covered, reports say. CryptoSlate reports the rules will apply to cases already before the courts, with existing seizure orders staying valid [2]. Law Times said the July draft would apply to cases pending when it took effect [3].
- Self-custody is harder to reach. CryptoSlate notes that seizing crypto in a private wallet could still be difficult where the debtor controls the private keys and will not cooperate [2].
Sources
- Korea National Law Information Center, Civil Execution Rules (민사집행규칙), revision reasons for Supreme Court Rule No. 3280, 12 October 2026, in force 1 November 2026. https://www.law.go.kr/LSW/lsRvsRsnListP.do?chrClsCd=010102&lsId=009325
- CryptoSlate (Oluwapelumi Adejumo), “South Korea clears way for courts to seize and sell Bitcoin for unpaid debts under new November rules”, 13 October 2026. https://cryptoslate.com/south-korea-clears-way-for-courts-to-seize-and-sell-bitcoin-for-unpaid-debts-under-new-november-rules/
- Law Times (법률신문), “법원, 비트코인 등 가상자산 압류·매각 절차 마련”, July 2026. https://www.lawtimes.co.kr/news/articleView.html?idxno=223121
- Yonhap News, “가상자산도 압류·현금화 강제집행 제도화…대법원 입법예고”, 5 July 2026. https://www.yna.co.kr/view/AKR20260705042100004
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