This study analyzes the characteristics of two different kinds of squat exercise through physical experiments and a computer simulation, i.e. one with a free weight and the other with a Smith machine are studied. This study also proposes a new design for the Smith machine, which has both the advantages of each type based on the results of the analysis. The muscle force and level of stimulation of the lower extremities during squatting were calculated by running an inverse dynamics analysis program on a musculoskeletal model together with the measured motion data. The calculated results were verified by comparing with the measured EMG data. The analysis showed that squatting using free weight is more effective than squatting using the Smith machine. Meanwhile, in order to design an improved Smith machine, which is the final goal of this study, the trajectory of the barbell of the subjects during free weight squatting was measured on the sagittal plane. The measurement showed that the average slope of the trajectory of the barbell is tilted backward by $10.7^{circ}$. Based on this measurement, this study proposes a tilted design for an improved Smith machine.