The Nuclear Steam Supply System (NSSS) thermal-hydraulic model adopted in the Korea Nuclear Plant Education Center (KNPEC)-2 simulator was provided in the early 1980s. The reference plant for KNPEC-2 is the Yong Gwang Nuclear Unit 1, which is a Westinghouse-type 3-loop, 950 MW(electric) pressurized water reactor. Because of the limited computational capability at that time, it uses overly simplified physical models and assumptions for a real-time simulation of NSSS thermal-hydraulic transients. This may entail inaccurate results and thus, the possibility of so-called "negative training," especially for complicated two-phase flows in the reactor coolant system. To resolve the problem, we developed a realistic NSSS thermal-hydraulic program (named ARTS code) based on the best-estimate code RETRAN-3D. The systematic assessment of ARTS has been conducted by both a stand-alone test and an integrated test in the simulator environment. The non-integrated stand-alone test (NIST) results were reasonable in terms of accuracy, real-time simulation capability, and robustness. After successful completion of the NIST, ARTS was integrated with a 3-D reactor kinetics model and other system models. The site acceptance test (SAT) has been completed successively and confirmed to comply with the ANSI/ANS-3.5-1998 simulator software performance criteria. This paper presents our efforts for the ARTS development and some test results of the NIST and SAT.