To predict the temperature distribution around a underground rock storage cavern, two- and three- dimensional numerical analysis using FLAC was conducted. The effects of groundwater and latent heat on thermal properties were considered in numerical calculation. The temperature estimated by FLAC are compared with the temperature measured for 5-year operation at Gonjiam storage cavern. Estimated and measured temperatures showed great discrepancy when thermal properties from laboratory tests were used and showed good agreement when the effects from 20% of volumetric water fraction and latent heat were considered. However, the discrepancy still increased with operation time due to the heat flow from ground surface. Three-dimensional numerical models were established to closely approximate the boundary condition of the test site, and numerical results better agreement when groundwater and latent heat effects were considered.