The reliability and accuracy of the information on control rod position are very important to the reactor safety and the design of the core protection system. A survey on the RSPT(Reed Switch Position Transmitter) type control rod position indicator system and its actual implementation in the existing nuclear power plants in Korea was performed first. The control rod position indicator having the high performance for SMART was developed on the basis of RSPT technology identified through the survey. The arrangement of permanent magnet and reed switches is the most important procedure in the design of control rod position indicator. The hysteresis of reed switches is one of the important factors in a repeat accuracy of control rod position indicator as well. This paper investigates efficiency of the magnetic flux concentrator and the hysteresis using FEM and verified differences in physicals characteristics by comparing the results of FEM and those of the experiment. As a result, it is shown that the characteristics of prototype control rod position indicator have a good agreement with the results of FEM.