This paper reports a study on determination of the adequate location of 100 MVA STATCOM regarding the transfer capability enhancement on the metropolitan interface as well as the economy in system operation. The base case in the study was established considering a scenario of the energy support to North Korea from the KEPCO (Korea Electric Power Corporation) system through a HVDC interconnection. In the base case, the energy support was approximately modeled with a load of 1500 MW, and by the load addition, the system was weakened in terms of voltage stability and transfer capability. After a thorough investigation on the case, the location of the STATCOM was decided to compensate the reactive deficit of the modified system and to maximize the operational benefit which can be estimated by FV analysis.