The characteristics of the recirculation operation of LMR which are different from the conventional plants such as PWR and fossil fuel plants were investigated using a computer code TSGS developed in this study. For simulating the transient behavior of the steam generation system, a water level control algorithm utilizing digital control hardware features was introduced. By investigation, the function of the recirculation operation was defined, the major features of the operation were found. Also good performance of the level control algorithm was confirmed.