In this paper, it was attempted to analyze the optimal design of light emitting diode (LED), a source of back light unit (BLU). LED is beginning with commercialized red LED which is made by GaAsP compound semiconductor, and has been developed focusing on liquid crystal panel. In order to get the optimal design, optical simulation was made by analyzing luminosity shape, reflector angle, chip depth, and chip position of LED lighting. Final results show that the proposed LED characteristics were useful to increase light efficiency and it has been proven by distribution chart for actual exposed light on the light guide panel (LGP).