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This paper presents a detailed analysis results of the effect of a thyristor-controlled series capacitor (TCSC) on subsynchronous resonance (SSR), which was first applied to a Korean power system. First, the TCSC parameters were calculated, the structure of TCSC with synchronous voltage reversal (SVR) controller was presented, and the torsional characteristics of Hanul nuclear power generator rotor were studied to investigate the natural frequency and mode shape. The test signal method was used to determine the electrical damping in the frequency range of SSR operation through an electromagnetic transient analysis program in various system configurations. The SSR phenomenon was analyzed by comparing the electrical and mechanical damping of a conventional fixed series capacitor (FSC), and the case of a TCSC installed, and the effectiveness of the TCSC without any risk of SSR was demonstrated. As a result, when installing FSC, SSR occurred under sensitive operating conditions, but SSR was prevented in the case of TCSC compensation with SVR. The results obtained in this study can be effectively applied to the installation of TCSC in real power systems.