In general, small and medium-sized enterprises in Korea ("SMEs") heavily rely on bank loans for their financial needs. This is because Korean bond market has been developed by issuance of unguaranteed unsecured bonds by corporations with high credit ratings. As a result, SMEs cannot finance through Korean bond market since they do not have credit ratings high enough to issue unguaranteed unsecured bonds. However, it will be desirable that SMEs have additional funding source alternative to bank loans in order to obtain timely and efficient financing. In this regard, issuance of secured bonds can play an importance role in SMEs`` financing via Korean bond market. Theoretically, SMEs with high quality assets are able to issue corporate bonds secured by their high quality assets even though they have relatively low credit ratings. However, practically speaking, a few obstacles to issuance of secured bonds in Korea exist. In this connection, I make a few proposals for activating secured bond market in Korea as follows: First, the scope of collateral under the Secured Bond Trust Act of Korea must be broadened, including intellectual property or receivables without debt certificates; Second, a security registration system must be introduced as a new publication method for security interests created on movable assets or receivables; and Third, credit rating experts and trust experts should be nurtured to accurately rate value of various collateral and to conduct trust business, respectively. If issuance of secured bonds becomes active in Korean bond market, SMEs with high-quality assets can finance via Korean bond market by way of issuing secured bonds and have better chance to obtain timely and efficient financing.