Despite South Korea's great potential to contribute to the global development community, its 'Korea Aid' program is at risk. South Korea’s official development assistance (ODA) policies have come under attack and scrutiny because of the chronic misalignment of grants and concessional loans, as well as the ensuing decline in the accountability of ODA disbursements, which has resulted in public distrust in South Korea’s ODA policies. However, with the launch of the new government, South Korea faces a political opportunity to reform its ODA policies. While the author expects the ODA policies to be sidelined within the larger frame of inclusive economic growth, he argues that the new government should put in conscious efforts to modernize Korea Aid. In doing so, he suggests clearly outlining the philosophical principles that justify Korea Aid, reducing the dichotomic fragmentation of Korea's ODA policies, and strategizing Korea Aid so that it is more competitive in comparison with the aid programs of other commercially-oriented Asian donors.