KIER has been developing a Ru-based preferential oxidation catalysts and a novel fuel processing system to provide hydrogen rich gas to residential PEMFCs system. The catalytic activity of Ru-based catalysts was investigated at different Ru loading amount and different support structure. The obtained result indicated that 2 wt% loaded Ru-based catalyst supported on ${alpha}-Al_2O_3$ showed high activity in low temperature range and suppressed the methanation reaction. The developed prototype fuel processor showed thermal efficiency of 78% as a HHV basis with methane conversion of 92%. CO concentration below 10 ppm in the produced gas is achieved with separate preferential oxidation unit under the condition of $[O_2]/[CO]=2.0$. The partial load operation have been carried out to test the performance of fuel processor from 40% to 80% load, showing stable methane conversion and CO concentration below 10 ppm. The durability test for the daily start-stop and 8 h operation procedure is under investigation and shows no deterioration of its performance after 50 start-stop cycles. In addition to the system design and development.