We developed a CASE-II water model that will enable the simulation of remote sensing reflectance($R_{rs}$) at the coastal waters for the retrieval of suspended sediments (SS) concentrations from satellite imagery. The model has six components which are: water, chlorophyll, dissolved organic matter (DOM), non-chlorophyllous particles (NC), heterotrophic microorganisms and an unknown component, possibly represented by bubbles or other particulates unrelated to the five first components. We measured $R_{rs}$, concentration of SS and chlorophyll, and absorption of DOM during our field campaigns in Korea. In addition, we generated $R_{rs}$ from different concentrations of SS and chlorophyll, and various absorptions of DOM by random number functions to create a large database to test the model. We assimilated both the computer generated parameters as well as the in-situ measurements in order to reconstruct the reflectance spectra. We validated the model by comparing model-reconstructed spectra with observed spectra. The estimated $R_{rs}$ spectra were used to (1) evaluate the performance of four wavelengths and wavelengths ratios for accurate retrieval of SS. 2) identify the optimum band for SS retrieval, and 3) assess the influence of the SS on the chlorophyll algorithm. The results indicate that single bands at longer wavelengths in visible better results than commonly used channel ratios. The wavelength of 625nm is suggested as a new and optimal wavelength for SS retrieval. Because this wavelength is not available from SeaWiFS, 555nm is offered as an alternative. The presence of SS in coastal areas can lead to overestimation chlorophyll concentrations greater than 20-500%.