Tokamak reactor system analysis code was developed at KAERI (Korea Atomic Energy Research Institute) and is used here for the conceptual development of a DEMO reactor. In the system analysis code, prospects of the development of plasma physics and the relevant technology are included in a simple mathematical model, i.e., the overall plant power balance equation and the plasma power balance equation. This system analysis code provides satisfactory results for developing the concept of a DEMO reactor and for identifying the necessary R&D areas, both in the physics and technology areas for the realization of the concept. With this system analysis code, the performance of a DEMO reactor with a limited extension of the plasma physics and technology adopted in the ITER design. The main requirements for the DEMO reactor were selected as: 1) demonstrate tritium self-sufficiency, 2) generate net electricity, and 3) achieve a steady-state operation. It was shown that to access an operational region for higher performance, the main restrictions are presented by the divertor heat load and the steady-state operation requirements.