Significant risk transfer (SRT) securitization allows banks to shift part of their loan portfolio credit risk to third-party investors while keeping the loans on their balance sheets, reducing risk-weighted assets (RWAs) and regulatory capital requirements. In the Republic of Korea (ROK), SRT could enhance banks' capital efficiency and support lending to higher-risk sectors like startups and SMEs. Internationally, the SRT market has grown rapidly, especially in Europe and North America, with global issuance of about $30 billion in 2024. Korean banks, particularly with corporate loans carrying higher risk weights, stand to gain meaningful capital relief from SRT. However, successful adoption requires clear regulatory frameworks, robust market data, effective coordination, and investors capable of managing specialized risks to safeguard financial stability.