The economic and environmental benefits of wind turbine-kerosene generator hybrid power systems have been analyzed for stand-alone electricity supply and desalination in Hong-do, South Korea using a microgrid simulation program. We have analyzed the cost effectiveness of wind-hybrid systems in relation to the sensitivity of the designed power grid to increased electricity demand, increased or decreased fuel price, and decreased wind turbine capital cost. The environmental impacts of the wind-hybrid grid are also evaluated in respect of pollutant emission. As a result, we have clearly confirmed that the optimized wind-hybrid system can save on the total cost by almost half at a wide range of the wind speed, and fuel and capital costs compared to the current generator-only system. Operation of the desalination facility during the non-tourist season utilizing surplus wind electricity has been proven to be beneficiary. An increased wind speed necessitates less dependence on wind turbines and generators since batteries can store a sufficient amount of excessive electricity that can be used during periods of electricity generation deficit. Wind hybrid systems are also expected to yield significant environmental benefits.