This paper proposes a finite element method (FEM)-based model of an interior permanent magnet (IPM) type BLDC motor having stator inter-turn faults. For more realistic simulation studies, the magnetic non-linearity is also considered in proposed model. And the simulation data are verified through experiment. By integrating the developed model with a current-controlled voltage source inverter (CCVSI) model, the characteristics of an inter-turn fault operated by six-switched inverter are investigated considering the speed control. And the circulating current, which is induced by magnetic linkage flux originated from PM, was analyzed from the view point of distortion of air-gap magnetic flux distribution caused deterioration of their torque.