RC shear walls are frequently used as lateral force-resisting system in building construction because they have sufficient stiffness and strength against damage and collapse. If RC shear walls are properly designed and proportioned, these walls can also behave as ductile flexural members like cantilevered beams. To achieve this goal, the designer should provide adequate strength and deformation capacity of shear walls corresponding to the anticipated deformation level. In this study, the level of demands for deformation of shear walls was investigated using a displacement-based design approach. Also, deformation capacities of shear walls are evaluated through laboratory tests of shear walls with specific transverse confinement widely used in Korea. Four full-scale wall specimens with different wall boundary details and cross-sections were constructed for the experiment. The displacement-based design approach could be used to determine the deformation demands and capacities depending on the aspect ratio, ratio of wall area to floor plan area, flexural reinforcement ratio, and axial load ratio. Also, the specific boundary detailing for shear wall can be applied to enhance the deformation capacity of the shear wall.