South Asia is a region with the largest demand for development cooperation in the world, and its importance as a devel-opment cooperation partner for Korea and other aid donors is increasing. Accordingly, South Asia’s proportion in the worldwide ODA (Official Develop-ment Assistance) is on the rise, from 10.9% in 2006 to 15.8% in 2010. Korea is also increasing the proportion of its ODA for South Asia and is seeking effective development assistance policies. In response to this state of affairs, this study quantifies the development demand, by country, in South Asia and Korea’s aid capacity in order to determine the focal areas for cooperation. This study also presents suggestions for effective ODA policies in South Asia.