This paper describes a feasibility analysis result of STATCOM application for the Jeju-Haenam HVDC system. The Jeju-Haenam HVDC system is one of the typical HVDC system interconnected with the low short-circuit-ratio AC system, which is vulnerable to the commutation failure due to the AC voltage variation. STATCOM has been considered as an effective reactive-power compensator to increase short-circuit-ratio of the interconnected AC system. In this study, a simulation model of Jeju-Hacnam HVDC system with STATCOM was developed using PSCAD/EMTDC. The developed simulation model was utilized to analyze the dynamic performance analysis of Jeju-Haenam HVDC system with STATCOM. The analysis results show that STATCOM can improve the dynamic performance of Jeju-Haenam HVDC system, such as load-change recovery performance and fault recovery performance.