The Korean space program was marked by the successful launching of a KSR-III liquid propelled sounding rocket. The Inertial Navigation System (INS) which carries out critical mission functions of navigation, guidance and control was domestically developed and perfectly certified through the flight test. The system consists of a strapdown inertial measurement, an onboard computer and flight software. This paper will describes the development works of the inertial navigation system, including top level system design, hardware and software. And it summarizes flight results.