In this special article, we presented the organization of the work group, basic principles of the algorithm, future plan and methods for developing a treatment algorithm for panic disorder in Korea. The psychiatrist work group from the Korean Association of Anxiety Disorders began to develop a treatment algorithm designed to improve the management of Korean patients with panic disorder by incorporating better evaluation techniques and treatment procedures. We have reviewed the treatment guidelines and algorithms for panic disorder published thus far, including the Practice Guideline for the Treatment of Patients with Panic Disorder established by the American Psychiatric Association, the Management of Anxiety (Panic Disorder, with or without Agoraphobia, and Generalized Anxiety Disorder) in Adults in Primary, Secondary and Community Care established by the National Institute for Clinical Excellence, and the Clinical Practice Guidelines established by the Canadian Psychiatric Association. We developed the basic materials to be used in the treatment algorithm for the management of panic disorder in Korea. Therefore, in this special article, we intro-duce the goal of the algorithm and the details of the algorithm development.