Container handling facilities in Korean ports have increased rapidly according to Korean industrialization and the worldwide containerization. Over 98% of total containers handles in Korean ports are handled in Puan ports. This paper presents the estimation method of annual container handling capacity of container terminals by the computer simulation models. Simulation models are developed utilizing SIMAN IV simulation package. Annual handling capacity of real container terminals such as BCTOC and PECT was estimated by the proposed simulation models. Also, Annual handling capaicty of planned or expected terminals in Puan port was estimated. The comparisons between container forecast demand and estimated handling capacity of Pusan port from 1996 through 2001 were made. It showed that Pusan port will have over two million TEU handling capacity shortage during that period and will face enormous port congestion. Lastly, mid term and long-term capacity expansion plansof container terminals in korean ports were discussed.