Saline groundwater, in addition to fresh groundwater, is actively developed for inland aqua culture in Jeju Island where groundwater is practically the only source of freshwater. In this work we analyzed impacts of saline and fresh groundwater development on groundwater systems in Sungsan subwatershed in Jeju. A sharp-interface model was used to simulate fresh and saline groundwater flows. Withdrawal of freshwater imparted adverse impacts by lowering groundwater level and inducing saltwater encroachment. Withdrawal of saline water imparted mixed results: on one hand it lowered groundwater level, on the other hand it reduced saltwater encroachments. However, freshwater development lowered groundwater level much more than salinewater development did. Modified Ghyben-Herzberg ratio was developed for a transition zone with finite width. Comparison against observed data resulted in fair agreement.