The spent nuclear fuel, combusted and released in the nuclear power plant, is stored in the spent fuel pool (SFP) located in the fuel buildings interconnected with the reactors. In Korea, spent fuel has been stored exclusively in SFPs, prompting initiatives to expand storage capacity by either installing additional SFPs or replacing them with high-density spent fuel storage racks. The installation of these fuel racks necessitates obtaining a regulatory license contingent upon ensuring safe fuel handling and storage systems. Regulatory agencies mandate the formulation of various postulated accident scenarios and assessments covering criticality, shielding, thermal behavior, and structural integrity to ensure safe fuel handling and storage systems. This study describes an evaluation method for assessing the structural damage to storage racks resulting from fuel dropping as a part of the functional safety evaluation of these racks. A scenario was envisaged wherein fuel was dropped onto the base plates of the upper and lower sections of the storage racks, and the impact load was analyzed using the ABAQUS/Explicit program. The evaluation results revealed localized plastic deformation but affirmed the structural integrity and safety of the storage racks.