In this study, a method to assess and monitor hydrological drought using remote sensing was investigated for use in regions with limited observation data, and was applied to the Upper Namhangang basin in South Korea, which was seriously affected by the 2008-2009 drought. Drought information may be obtained more easily from meteorological data based on water balance than hydrological data that are hard to estimate. Air temperature data at 2 m above ground level (AGL) were estimated using remotely sensed data, evapotranspiration was estimated from the air temperature, and the correlations between precipitation minus evapotranspiration (P-PET) and streamflow percentiles were examined. Land Surface Temperature data with $1{ imes}1km$ spatial resolution as well as Atmospheric Profile data with $5{ imes}5km$ spatial resolution from MODIS sensor on board Aqua satellite were used to estimate monthly maximum and minimum air temperature in South Korea. Evapotranspiration was estimated from the maximum and minimum air temperature using the Hargreaves method and the estimates were compared to existing data of the University of Montana based on Penman-Monteith method showing smaller coefficient of determination values but smaller error values. Precipitation was obtained from TRMM monthly rainfall data, and the correlations of 1-, 3-, 6-, and 12-month P-PET percentiles with streamflow percentiles were analyzed for the Upper Namhan-gang basin in South Korea. The 1-month P-PET percentile during JJA (r = 0.89, tau = 0.71) and SON (r = 0.63, tau = 0.47) in the Upper Namhan-gang basin are highly correlated with the streamflow percentile with 95% confidence level. Since the effect of precipitation in the basin is especially high, the correlation between evapotranspiration percentile and streamflow percentile is positive. These results indicate that remote sensing-based P-PET estimates can be used for the assessment and monitoring of hydrological drought. The high spatial resolution estimates can be used in the decision-making process to minimize the adverse impacts of hydrological drought and to establish differentiated measures coping with drought.