Recently, interest in augmented reality (AR) technology has been growing with the proliferation of smartphone use, yet quality evaluation of augmented reality remains insufficient. Therefore, the purpose of this study was to validate a modified TAM model in which only perceived usefulness—a core factor of TAM—was applied to an extended TAM model, excluding ease of use. As external factors, information system quality dimensions including system quality, information quality, and service quality were selected, and the structural relationships among ease of use and augmented reality reuse intention were examined. Furthermore, considering that augmented reality technology provides virtual information, the moderating role of telepresence, defined as virtual experience, was verified, and the mediating effect of perceived usefulness was also tested. The survey was conducted from October 1 to October 15, 2013, targeting business administration students at C University located in Seoul. Prior to completing the survey, each researcher accompanied each respondent on a one-to-one basis, and respondents were asked to use augmented reality objects for approximately one hour centered on their current location. Questionnaires were distributed to a total of 134 respondents, and after excluding 20 responses identified as outliers, 114 questionnaires were used in the final analysis. SPSS 18.0 and PLS Graph 3.0 were used for statistical analysis. The results of this study are as follows. First, system quality, information quality, and service quality were found to have a positive (+) effect on perceived usefulness. Second, a significant positive (+) relationship was found between perceived ease of use and augmented reality reuse intention. Third, the moderating effect of telepresence was verified, as differences in path coefficients were found between the high telepresence group and the low telepresence group. Fourth, regarding the mediating effect analysis of perceived usefulness, a full mediating effect of perceived usefulness was found between system quality and information quality as antecedent variables and augmented reality reuse intention, while a partial mediating effect of perceived usefulness was found between service quality and augmented reality reuse intention. Based on these research findings, theoretical and practical implications for smartphone augmented reality application developers and marketing practitioners were presented, and finally, limitations were discussed.