Regionally varying seismic hazards can be estimated using an earthquake loss estimation system(e.g. HAZUS). The resulting estimates for actual earthquakes help federal and local authorities develop rapid, effective recovery measures. Estimates for scenario earthquakes help in designing a comprehensive earthquake hazard mitigation plan. Local site characteristics influence the ground motions ensuing from earthquakes. Realistic loss estimates can be obtained using a site classification map, which faithfully portrays the characteristics of the shallow subsurface. We estimated the losses due to a magnitude 6.7 scenario earthquake in Gyeongju, with and without a site classification map. Significant differences in loss estimates were observed. The loss without the site classification map decreased without variation with increasing epicentral distance, while the loss with the site classification map varied from region to region, due to both the epicentral distance and local site effects. The major cause of the large loss expected in Gyeongju is the short epicentral distance. Pohang Nam-Gu is located farther from the earthquake source region. Nonetheless, the loss estimates in the remote city are as large as those in Gyeongju and are attributed to the site effect of soft soil found widely in the area.