Since data security problems are very important in the information age, cryptographic algorithms for encryption and decryption have been studied for a long time. The GOST(Gosudarstvennyi Standard or Government Standard) algorithm as a data encryption algorithm with a 256-bit key is a 64-bit block algorithm developed in the former Soviet Union. In this paper, we describe how to design an encryption chip based on the GOST algorithm. In addition, the GOST algorithm is compared with the DES(Data Encryption Standard) algorithm, which has been used as a conventional data encryption algorithm, in modeling techniques and their performance. The GOST algorithm whose key size is relatively longer than that of the DES algorithm has been expanded to get better performance, modeled in VHDL, and simulated for implementation with an CPLD chip.