Asset-Backed Securitization is referred to as a series of activities involving issuance of asset-backed securitization to enhance the liquidity of non-current assets, and it is used as a useful method to raise funds at low cost by financial institutions and corporations. In addition, it contributes to enhancing the soundness of the financial structures since risky assets are financed by securitization, and asset holders can raise the capital adequacy ratio. The need for legislation on the asset-baked securitization has steadily been suggested centering on the financial institutions, but active promotion of legislation has not been made until 1997, when extreme shortages of liquidity occurred after the IMF crisis. And finally ‘Asset-Backed Securization Act’, a basic law on the asset backed securitization (ABS) was legislated on September 16, 1998. As known from the background of enactment and regulatory contents, ‘Asset-Backed Securization Act’ has the nature of support law, not regulatory law since it is designed for activation of asset-backed securitization. In this study, various legal issues such as the basic structures of asset-backed securitization, the legal nature of asset-backed securitization and maintenance of the transfer conditions were figured out. The Asset-Backed Securization Act was legislated for cleanup of non-performing loans from financial institutions initially. However since 1998, when the Asset-Backed Securitization Act came into effect, the market for asset-backed securitization has grown quantitatively and it brought about many changes in quality. With these quantitative and qualitative changes, many unexpected problems came to occur, and there is growing possibilities of controversial legal issues depending on the contents of securitization. For development of Korea’s finance, activation of asset-backed securitization is required, and it is necessary to deduce improvement plan for asset-backed securitization system on the basis of the analysis on the problems occurred in the course of system operation and changes in market environment. For this, the technical and structural characteristics of asset-backed securitization are to be figured out, and then multiple problems is to be reviewed from legal aspects. In addition, to secure safety and reliability of asset-backed securitization, it is required that the unnecessary or unreasonable contents in the special provisions of ‘Asset-Backed Securitization Act’ should be continuously complemented to resolve several legal issues.