In this paper, a static synchronous compensator(STATCOM), which in general compensates reactive power, is proposed in order to balance the unbalanced loads. Reference values for the compensation of the unbalanced loads currents are determined by 3-phase circuit analysis result. Also the STATCOM control unit is designed considering the proposed compensation scheme for the unbalanced loads. As a result, the effectiveness of the STATCOM for balancing the load currents is verified by computer simulations.