Recognizing how human activities affect hydrological systems is vital for the sustainable preservation and effective management of water resources in the watershed. Hence, this paper focuses on the hydrological response to land use and land cover (LULC) change scenarios in the Anyang watershed, South Korea. We obtained LULC data maps for the years 2000, 2013, and 2022 from the local government, revealing significant changes over the years. Agricultural lands experienced a 6.2% increase from 2000 to 2022, and pastureland expanded by 8.67% over two decades. The SWAT model was utilized to assess the impact of LULC on the hydrological components of the study watershed. Model calibration and validation for each LULC change were carried out using the SWAT-CUP program, considering the recorded streamflow information of the region. An excellent agreement was reached between the simulated and measured streamflow in both the calibration and validation stages under various LULC conditions. The Nash–Sutcliffe model efficiency (NSE), the objective function, demonstrated values of 0.9, 0.89, and 0.89 during the calibration for 2000, 2013, and 2022, respectively, in the LULC scenario, while for the validation, we obtained values of 0.82, 0.78, and 0.80 for 2000, 2013, and 2022, respectively. Our findings indicate that the surface runoff rise contributed much to the water yield increase over the two decades compared to the other components in terms of the water yield, while the contribution of evapotranspiration (ET) to the watershed hydrological cycle declined by 1.66% from 2000 to 2022. The southeastern sub-basin part showed a high groundwater recharge distribution due to agricultural land, rice area, and forest area changes.