Recent earthquakes in Korea, like Gyeongju and Pohang, have highlighted the need for accurate seismic hazard assessment. The lack of substantial ground motion data necessitates stochastic simulation methods, traditionally used with a simplistic point-source assumption. However, as earthquake magnitude increases, the influence of finite faults grows, demanding the adoption of finite faults in simulations for accurate ground motion estimates. We analyzed variations in simulated ground motions with and without the finite fault method for earthquakes with magnitude (Mw) ranging from 5.0 to 7.0, comparing pseudo-spectral acceleration. We also studied how slip distribution and hypocenter location affect simulations for a virtual earthquake that mimics the Gyeongju earthquake with Mw 5.4. Our findings reveal that finite fault effects become significant at magnitudes above Mw 5.8, particularly at high frequencies. Notably, near the hypocenter, the virtual earthquake’s ground motion significantly changes using a finite fault model, especially with heterogeneous slip distribution. Therefore, applying finite fault models is crucial for simulating ground motions of large earthquakes (Mw ≥ 5.8 magnitude). Moreover, for accurate simulations of actual earthquakes with complex rupture processes having strong localized slips, incorporating finite faults is essential even for more minor earthquakes.