Various compensators are installed into the power system to operate the system economically and stably by maximizing the availability of utilities and power transmission capability. Fixed Capacitor(FC), Mechanical Switched Capacitor(MSC), and FACTS(Flexible AC Transmission Systems) are used to regulate voltage and power flow of the system. When a disturbance occurs in the power system, the Fixed Capacitor operates dependently on the voltage of the power system and cannot change the amount of installation automatically. But compared to other equipment, the Fixed Capacitor is more economical due to its low cost. Since MSC can change the amount of installation according to the state of the power system, operates more effectively than the Fixed Capacitor. FACTS have fast dynamic performance for the transient condition, but the cost is high. Therefore, it is needed to develop an optimized installation planning for the reactive power compensators by considering their dynamic performance and cost. In this paper, an optimized compensator combination and the proposed scheme is proposed and it is applied to KEPCO system in order to show its capabilities.